n NISM Certifications
XV NISM Series XV
Medium

When is a company valuation typically conducted?

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

Options

  1. A

    Accounting, taxation and other regulatory and legal requirements

  2. B

    Selling a business as part of disinvestment exercise

  3. C

    Buying a business as part of investment exercise

  4. All of the above

    Correct answer

Why this is the answer

Valuations can be conducted for multiple reasons including buying or selling a business, mergers, disinvestment, regulatory compliance, and providing fair treatment to stakeholders.

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