🎓CFA Final Prep All Topics

Equity 1 – Market Org & Structure

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Question

How do financial assets differ from real assets?

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Answer

Financial assets are claims; real assets are physical assets.

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Question

Why might a hybrid market structure exist instead of a purely order-driven one?

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Answer

It combines order matching with dealer liquidity support.

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Question

When are brokered markets especially useful?

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Answer

For large, unique, or hard-to-match transactions.

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Question

How does a quote-driven market differ from an order-driven market?

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Answer

Quote-driven uses dealer quotes; order-driven matches investor orders directly.

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