Reading 52: Organization and ...LOS c习题精选 statements, negotiated, continuous, 2010

honeycfa

LOS c: Distinguish between call and continuous markets.

Which of the following statements about securities exchanges is FALSE?

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

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

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

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

 

honeycfa

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.

honeycfa

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

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.

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A call market is a market where a security is only traded at specific times.