n NISM Certifications
XXI NISM Series XXI-A
Medium

An investor who buys a stock expecting the price to rise is engaging in:

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Short selling

  2. Speculation

    Correct answer

  3. C

    Hedging

  4. D

    Arbitrage

Why this is the answer

Buying with the expectation of profit from price increase is speculation.

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