CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

A continuous market most likely exists for a stock when ______
A. trades occur at any time when the market is open and stocks are priced either by auction or by dealers.
B. new information about the company prospects is continuously released to market participants.
C. specialists or market makers attempt to derive new equilibrium prices in an orderly manner.
Explanation: In a continuous market, trades occur at any time when the market is open and the stocks are priced either by auction or by dealers. The dealers provide liquidity for investors by buying and selling the shares of stock for themselves.

User Contributed Comments 1

User Comment
Fpenae Priced by:
- Dealers -> Quoted driven markets
or
- Auction -> Orden driven markets

So continuous markets refer to OTC and normal Stock exchanges.
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