walrasian market

Dictionary of Finance and Investment Terms for: walrasian market
walrasian market

also known as a call market, a market process that collects buy and sell orders, which are then analyzed to determine a clearing price that will decide the market price. Similar to the method used by New York Stock Exchange specialists when they determine an opening price by analyzing all the orders for a stock and determining the price that will clear the greatest number of trades. Contrasts with a continuous market, which describes the way buy and sell orders are matched as they are received after the opening bell.

Copyright (c) by Barron's Educational Series. Reprinted by arrangement with the publisher of this site.