CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Which statements are true regarding call markets?

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.
You need to log in first to add your comment.