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Call

What is a 'Call'

A call auction is sometimes referred to a call market; it's a time on an exchange when buyers set a maximum price that they are willing to pay for a given security, and sellers set a minimum that they are willing to accept. The buyers and sellers are matched in a process that can increase liquidity and decrease volatility.

Explaining 'Call'

A call auction, also known as a call market, is a type of trading on a securities exchange, while a call option is a derivative product.

Call Auction

In this type of trading, the exchange sets a specific time to trade a stock. It's most common on smaller exchanges where a limited number of stocks are traded. Larger exchanges also sometimes utilize this structure for less liquid stocks. Stocks might all be called to trade at the same time, or they could be done sequentially. Buyers stipulate the maximum price that they are willing to pay, and sellers do the same for their minimum. All interested traders must be present at the same time. Once the call period is concluded, the security is illiquid until it is called again. Governments sometimes use call auctions when they sell notes, bills and bonds.

Call Option

The owner of a call option has the right but not the obligation to buy the underlying instrument at a given price (the strike price) within a given period of time. The seller of a call is sometimes referred to as the writer of the option. The underlying instrument could be a stock, a bond, a foreign currency, a commodity or any other traded instrument. A put is essentially the opposite of a call; it is the right but not the obligation to sell at the strike price within a given period.


Further Reading


An empirical comparison of published replication research in accounting, economics, finance, management, and marketing
www.sciencedirect.com [PDF]
… H2: Other things being equal, there is no difference in the publication time lags between the original and repli- cated/extended studies in the accounting, economics, finance, management, and marketing disciplines. Because failures to replicate call into question the original …

The interrelations of finance and economics: Theoretical perspectivesThe interrelations of finance and economics: Theoretical perspectives
www.jstor.org [PDF]
… H2: Other things being equal, there is no difference in the publication time lags between the original and repli- cated/extended studies in the accounting, economics, finance, management, and marketing disciplines. Because failures to replicate call into question the original …

Analysis of equity warrants as investment and finance instruments.Analysis of equity warrants as investment and finance instruments.
elibrary.ru [PDF]
… H2: Other things being equal, there is no difference in the publication time lags between the original and repli- cated/extended studies in the accounting, economics, finance, management, and marketing disciplines. Because failures to replicate call into question the original …

The Muezzin's Call and the Dow Jones Bell: On the Necessity of Realism in the Study of Islamic LawThe Muezzin's Call and the Dow Jones Bell: On the Necessity of Realism in the Study of Islamic Law
academic.oup.com [PDF]
… H2: Other things being equal, there is no difference in the publication time lags between the original and repli- cated/extended studies in the accounting, economics, finance, management, and marketing disciplines. Because failures to replicate call into question the original …

Call for Papers—Special Issue of Call for Papers—Special Issue of
pubsonline.informs.org [PDF]
… H2: Other things being equal, there is no difference in the publication time lags between the original and repli- cated/extended studies in the accounting, economics, finance, management, and marketing disciplines. Because failures to replicate call into question the original …

A call for replication studiesA call for replication studies
journals.sagepub.com [PDF]
… H2: Other things being equal, there is no difference in the publication time lags between the original and repli- cated/extended studies in the accounting, economics, finance, management, and marketing disciplines. Because failures to replicate call into question the original …

Convertible debt issuance, capital structure change and financing-related information: Some new evidenceConvertible debt issuance, capital structure change and financing-related information: Some new evidence
www.sciencedirect.com [PDF]
… H2: Other things being equal, there is no difference in the publication time lags between the original and repli- cated/extended studies in the accounting, economics, finance, management, and marketing disciplines. Because failures to replicate call into question the original …



Q&A About Call


What is a call auction?

A call auction is sometimes referred to as a call market; it's a time on an exchange when buyers set a maximum price that they are willing to pay for a given security, and sellers set a minimum that they are willing to accept. The buyers and sellers are matched in a process that can increase liquidity and decrease volatility.

What is consumption of goods and services?

Consumption of good and service.

Is this type of trading used by all exchanges?

This type of trading isn't used by all exchanges; it's most common on smaller exchanges where fewer stocks are traded. Larger exchanges also sometimes utilize this structure for less liquid stocks.

What happens if there aren't enough people who want to buy or sell at certain prices?

If there aren't enough people who want to buy or sell at certain prices, then no trades will take place during this period of time.

Why would governments use call auctions when selling notes, bills and bonds?

Governments sometimes use call auctions when they sell notes, bills and bonds because these securities have longer maturities than other types of debt instruments such as treasury bills or commercial paper which trade in continuous markets throughout each day.""

What is distribution of goods and services?

Distribution of goods and services.

How does the process of matching buyers and sellers work?

Buyers stipulate the maximum price that they are willing to pay, and sellers do the same for their minimum. All interested traders must be present at the same time. Once the call period is concluded, the security is illiquid until it is called again.

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