n NISM Certifications
X NISM Series X
Medium

What advantage do institutional investors provide to financial markets?

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. A

    Greater accountability

  2. Better information sourcing and analysis

    Correct answer

  3. C

    Lower concentration of holdings

  4. D

    All of the above

Why this is the answer

Institutional investors enhance market efficiency through superior analysis and information, aiding proper asset pricing.

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