n NISM Certifications
X NISM Series X
Medium

Selling 10,000 shares when the volume is only 800 shares on a day creates ________.

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Market risk

  2. B

    Sector-specific risk

  3. C

    Transactional risk

  4. Liquidity risk

    Correct answer

Why this is the answer

Liquidity risk arises when an investor cannot find sufficient buyers or sellers, making it difficult to execute large transactions.

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