n NISM Certifications
X NISM Series X
Medium

In which situation is dealing in securities NOT considered fraudulent?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Buying or selling securities legally

    Correct answer

  2. B

    Entering transactions without intention to perform

  3. C

    Artificial price manipulation

  4. D

    Misleading new investors

Why this is the answer

Buying, selling, or pledging securities in physical or dematerialized form is a lawful activity and does not constitute fraud under securities regulations.

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