ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A call auction, or call market, is where market participants place orders to buy or sell at certain bid or offered (ask) prices, which are then batched together and matched at predetermined time intervals.

Detailed explanation-2: -In a continuous market, a trade is made whenever the bid and ask prices cross. In a call auction, the buy and sell orders are cumulated for each stock for simultaneous execution in a multilateral, batched trade, at a single price, during a predetermined time (Pagano and Schwartz 2003.

Detailed explanation-3: -What is the Call Market? The call market refers to a market where trading does not take place continuously, but only at specified times during the trading day. Prices are dictated by the exchange rather than by bids and offers.

Detailed explanation-4: -Examples of call market are Deutsche Bourse and Euronext Paris Bourse. Continuous Trading Market. In a continuous trading market, traders can trade at any time when the market is open. Buyers and sellers continuously place their orders and are matched on a continuous basis.

Detailed explanation-5: -The four phases of a market cycle include the accumulation phase, mark-up phase, distribution phase, and mark-down phase.