Reading 55: Market Organization and Structure-LOS j 习题精选 2011, statements, following, center

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Session 13: Market Organization, Market Indices, and Market Efficiency
Reading 55: Market Organization and Structure

LOS j: Describe how securities, contracts, and currencies are traded in quote-driven markets, order-driven markets and brokered markets.

 

 

Which of the following statements about securities exchanges is NOT correct?

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

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

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

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

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Which of the following statements about securities exchanges is most accurate?

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

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

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

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Continuous markets are markets where trades occur at any time 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.

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A trading system that matches buyers and sellers based on price and time precedence is most likely a(n):

A) quote-driven market.

B) brokered market.

C) order-driven market.

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In an order-driven market, buy orders and sell orders are matched up by the exchange according to order matching rules. In a quote-driven market, customers trade with dealers at bid and ask prices set by the dealers. In a brokered market, brokers organize trades among their clients.