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Basic Question 4 of 10
An example of a call market is the ______
II. setting of the market price by a NYSE specialist after the release of information that greatly alters the value of a security.
III. process used to clear outstanding trades on the NYSE after a prolonged halt in the trading of a stock.
I. opening of the New York Stock Exchange, when numerous orders are received overnight.
II. setting of the market price by a NYSE specialist after the release of information that greatly alters the value of a security.
III. process used to clear outstanding trades on the NYSE after a prolonged halt in the trading of a stock.
User Contributed Comments 5
| User | Comment |
|---|---|
| sarath | Call market when the trading is done at a specific time ....after some halt for some reaason like temporary blocking trading in the stock.... |
| johntan1979 | II: the setting of the market price by a NYSE specialist Can people actually do THAT??? |
| jonan203 | he can if he is a dealer and has inventory of the stock. |
| fabsan | Continuous market: Orders sent to the Exchange are simultaneously reflected on the market. For example, Stock A has a Bid of $10 and an Ask of $10.12. If I place an order to sell at $10.10, at the Exchange the Ask price will go down to $10.10 because I have the lower Ask. This is continuous, the exchange does not hold my order. |
| fabsan | What I said above is also an Auction market by definition, because no matter the quantity I have wanted to sell at $10.10, the new ask quoted will be $10.10. Call market: Like the name says, a Call market is called by the Exchange or a Dealer (On the OTC) at a specific time. For example in Canada, when the Bank of Canada sells Debt security, he does it on the Open market by calling the participants of the open market at a specific time. |
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Learning Outcome Statements
describe how securities, contracts, and currencies are traded in quote-driven, order-driven, and brokered markets
CFA® 2025 Level I Curriculum, Volume 3, Module 1.