Canadian Securities Course (CSC) Practice Exam 2025 – The Comprehensive All-in-One Guide to Exam Success!

Question: 1 / 400

What is a characteristic of an auction market?

Deals with debt instruments

Operates OTC

Trades executed by brokers on behalf of clients

An auction market is a type of market in which bids and offers are publicly made and exchanged, regardless of location, through one or more exchanges or brokers. This type of market allows for a variety of securities, including debt instruments, equity, and derivatives, to be bought and sold. Option A is incorrect because while an auction market may offer the ability to trade debt instruments, it is not the sole focus. Option B is incorrect because an auction market operates through an exchange, not over-the-counter. Option D is incorrect because while an auction market may also trade equity, it is not the primary focus. Option C accurately describes the role of brokers in executing trades on behalf of clients in an auction market.

Get further explanation with Examzify DeepDiveBeta

Primarily focuses on equity

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy