Ace the Canadian Securities Course 2025 - Rock the CSC Practice Exam!

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.

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Primarily focuses on equity

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