CFA Practice Question

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CFA Practice Question

When determining the trade price, a continuous order-driven market uses ______.

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.
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