n NISM Certifications
XV NISM Series XV
Medium

Old companies which have a long track record give confidence to investors because ________

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    These companies have seen many business cycles

  2. B

    These companies have more knowledge and experience to meet new challenges

  3. C

    These companies have very good historical financials

  4. Both 1 and 2

    Correct answer

Why this is the answer

Long-established companies are trusted because they have weathered multiple business cycles and gained experience to handle future challenges effectively. Historical financials may help, but resilience and institutional knowledge are key.

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