n NISM Certifications
X NISM Series X
Medium

The daily price band limits for individual stocks depend on which factor?

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

Options

  1. A

    Public and private shareholding

  2. B

    Price levels

  3. Volatility

    Correct answer

  4. D

    All of the above

Why this is the answer

Stock exchanges set daily price bands based on the stock’s volatility to limit excessive price fluctuations and maintain market stability.

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