n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following best describes 'Value Investing'?

Practice question from NISM XXI A for PMS - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Investing in stocks with high growth potential

  2. Buying undervalued stocks relative to their intrinsic value

    Correct answer

  3. C

    Investing in stocks with high dividend yields

  4. D

    Trading based on technical analysis signals

Why this is the answer

Value investors seek stocks trading below their intrinsic worth, expecting markets to correct the undervaluation.

Test yourself for real

Take a full NISM Series XXI-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.