n NISM Certifications
VII NISM Series VII
Medium

The additional due diligence risk procedures carried out by stock brokers include _____ .

Practice question from NISM Series VII Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Graded Surveillance Measure (GSM)

  2. B

    Additional Surveillance Measure (ASM)

  3. C

    Enhanced Supervision

  4. All of the above

    Correct answer

Why this is the answer

Risk reduction measures include Graded Surveillance Measure (GSM) for abnormal price movements, Additional Surveillance Measure (ASM) for volatility concerns, and Enhanced Supervision procedures for brokers.

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