n NISM Certifications
VII NISM Series VII
Medium

Which of the following securities is least liquid?

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Government bonds

  2. B

    Blue-chip shares

  3. Penny stocks

    Correct answer

  4. D

    Exchange-traded funds (ETFs)

Why this is the answer

Penny stocks have low market capitalization and thin trading volumes, making them less liquid than other major securities.

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