Call markets and crowd trading offer advantages for __________ because they mitigate the possibility of sparse order flow over short time periods.

Question

Quizplus · Accepted Answer

Thinly traded issues are more susceptible to sparse order flow over short time periods, which can result in wide bid-ask spreads and increased volatility. Call markets and crowd trading help to mitigate this by bringing together a larger number of buyers and sellers, leading to more efficient pricing and improved liquidity. Actively traded issues may not necessarily need the same level of intervention. Stocks and bonds may also benefit from call markets and crowd trading.

Call Markets and Crowd Trading Offer Advantages for __________ Because