- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 1. Market Organization and Structure
- Subject 7. Secondary Security Market and Contract Market Structures
CFA Practice Question
When determining the trade price, a continuous order-driven market uses ______.
B. derivative pricing rule
C. uniform pricing rule
A. discriminatory pricing rule
B. derivative pricing rule
C. uniform pricing rule
Correct Answer: A
User Contributed Comments 4
| User | Comment |
|---|---|
| Shaan23 | I thought after the orders were matched its uses trade pricing rules to determine price of which there is three of them and all of them listed above. I thought answer was all of the above. |
| Shaan23 | Ah got it. Call Markets use UDD Continuous markets use discriminatory Crossing networks use Derivative. |
| Kmoore24 | Think of it like this - stock prices are based on supply and demand - there is no consumer surplus in stock purchases. |
| rumshine | I believe there still could be consumer surplus in stock purchases if you believe a stock is worth more than it is selling for. |