1.Which of the following statements about securities exchanges is TRUE?

A)   Continuous markets are markets where trades occur 24 hours per day.

B)   Call markets are markets in which the stock is only traded at specific times.

C)   Setting a negotiated price to clear the market is a method that is never used in major continuous markets.

D)   Setting a negotiated price to clear the market is a method used to set the closing price in major continuous markets.

2.Which of the following statements about securities exchanges is FALSE?

A)   A stock with a relatively large market volume is most likely to trade in the continuous market.

B)   A call market is an open-outcry market where bids are called out in a trading pit.

C)   The price in continuous markets is set by either the auction process or by dealer bid-ask quotes.

D)   A call market is a market in which the stock is only traded at specific times. Once all bids and asks are declared, a negotiated price is set that clears the market for the stock.

3.Which of the following statements about securities exchanges is FALSE?

A)   In continuous markets, prices are set only by the auction process.

B)   In call markets, there is only one negotiated price set to clear the market for a given stock.

C)   Securities exchanges may be structured as call markets or continuous markets.

D)   Securities exchanges are places where buyers and sellers conduct the trade of securities.

答案和详解如下：

1.Which of the following statements about securities exchanges is TRUE?

A)   Continuous markets are markets where trades occur 24 hours per day.

B)   Call markets are markets in which the stock is only traded at specific times.

C)   Setting a negotiated price to clear the market is a method that is never used in major continuous markets.

D)   Setting a negotiated price to clear the market is a method used to set the closing price in major continuous markets.

The correct answer was B)

Continuous markets are markets where trades occur at any time, but only when the market is open (i.e. they do not need to be open 24 hours per day). Setting one negotiated price is a method used in major continuous markets to set the opening price.

2.Which of the following statements about securities exchanges is FALSE?

A)   A stock with a relatively large market volume is most likely to trade in the continuous market.

B)   A call market is an open-outcry market where bids are called out in a trading pit.

C)   The price in continuous markets is set by either the auction process or by dealer bid-ask quotes.

D)   A call market is a market in which the stock is only traded at specific times. Once all bids and asks are declared, a negotiated price is set that clears the market for the stock.

The correct answer was B)

For a given stock with a relatively small market volume, it is most likely to trade in the call market where the stock is only traded at specific times.

3.Which of the following statements about securities exchanges is FALSE?

A)   In continuous markets, prices are set only by the auction process.

B)   In call markets, there is only one negotiated price set to clear the market for a given stock.

C)   Securities exchanges may be structured as call markets or continuous markets.

D)   Securities exchanges are places where buyers and sellers conduct the trade of securities.

The correct answer was A)

In continuous markets, the price is set by either the auction process or by dealer bid-ask quotes.