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Basic Question 10 of 10
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
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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Learning Outcome Statements
describe how securities, contracts, and currencies are traded in quote-driven, order-driven, and brokered markets
CFA® 2025 Level I Curriculum, Volume 3, Module 1.