Call Auction
 |
Definition of 'Call Auction'Where participants buy or sell units of a good. At a call auction, participants place orders to buy or sell units at certain buying or selling prices. Orders collected during a call auction are matched to form a contract. Call auction rules vary by auction. |
 |
Investopedia explains 'Call Auction'In the securities market, this procedure replaces the method of continuously matching orders. Buyers set a maximum price at which they will buy the shares and sellers set a minimum price at which they are willing to sell the stock shares. Advantages of call auctions include a decrease in price instability. |
Related Definitions
Articles Of Interest
-
A Look At Primary And Secondary Markets
Knowing how the primary and secondary markets work is key to understanding how stocks trade. -
The NYSE And Nasdaq: How They Work
Learn some of the important differences in the way these exchanges operate and the securities that trade on them. -
Why You Should Understand The Stock Market
Even if you don't invest a cent in stocks, you should still understand how the stock market works. Find out why. -
The Stock Market: A Look Back
The past century was marked by furious economic change. What can it tell us about what lies ahead? -
The Auction Method: How NYSE Stock Prices are Set
The New York Stock Exchange (NYSE), sometimes referred to as “the big board,” is the oldest and largest stock exchange in the United States. NYSE is the place investors think of when ... -
The Closing Cross: How Nasdaq Stock Prices Are Set
When you hear that your favorite stock closed at a record high price, have you ever considered how that price was reached? The calculation effort is far more complex than you might expect. To ... -
The Opening Cross: How Nasdaq Stock Prices Are Set
The National Association of Securities Dealers Automated Quotations, commonly referred to as Nasdaq, is a computerized marketplace where stocks are traded from 9:30am to 4pm Eastern Standard ... -
How Bitcoin Works
Bitcoin is a digital currency that exists almost wholly in the virtual realm, unlike physical currencies like dollars and euros. A growing number of proponents support its use as an alternative ... -
The History Of The T-Bill Auction
Learn how the U.S. found the perfect solution to its debt problems and ended up creating one of the largest markets in the world. -
Tariffs
Tariffs, or customs duties, are taxes imposed on foreign goods and services. In addition to providing a country with additional revenue, tariffs offer protection to domestic producers. Imported ...
Free Annual Reports