Which of the following statements is NOT true about auction markets?
A) In an auction market, buyers and sellers confront each other directly and bargain over price.
B) The participants can only communicate orally in auction markets.
C) The New York Stock Exchange is the best-known example of an auction market.
D) The auctioneer in an auction market is the specialist, who is designated by the exchange to represent orders placed by public customers.

Question

Quizplus · Accepted Answer

The statement that all communication in auction markets is oral is not true. In fact, many auction markets also allow for electronic bidding and communication between buyers and sellers.

Which of the Following Statements Is NOT True About Auction