Organized exchanges are auction markets, where buyers and sellers call out orders to a specialist on the floor of the exchange who acts as an intermediary for stocks listed on the exchange by matching open buy and sell orders and is referred to as "open outcry."

Question

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Organized exchanges operate as auction markets where buyers and sellers indeed vocalize their orders, often through a method known as "open outcry," to a specialist or market maker on the exchange floor who facilitates the matching of buy and sell orders for stocks listed on that exchange.

Organized Exchanges Are Auction Markets, Where Buyers and Sellers Call