NISM Series XIII Common Derivatives Certification Exam Notes

Page 16 Of 303

Go to:

  • Market Behavior: Indices reflect overall market trends and sentiment.
  • Stock Selection: Based on predefined criteria like trading volume and market cap.
  • Index Rebalancing: Periodic adjustment of index constituents to maintain relevance.
  • Price Impact: Large orders can move prices, increasing transaction costs.
  • Index Funds: Mutual funds designed to replicate index performance.

NISM Common Derivatives

Copyright 2025 - MODELEXAM MODELEXAM®