- 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
Which statements are true regarding call markets?
II. They are usually organized just once a day.
III. When they are called they are likely to be very liquid.
I. Most call markets use single-price auctions to match buyers and sellers.
II. They are usually organized just once a day.
III. When they are called they are likely to be very liquid.
Correct Answer: I, II and III
II: Some markets organize calls at more frequent intervals. III: When they are not called they are completely illiquid.
User Contributed Comments 1
| User | Comment |
|---|---|
| gomez1234 | In Europe, there are min 2 call markets - opening and closing auction. Opening tends to be very illiquid. I don't agree to II and III as a trader, even they may be written in the textbook. |