A time out can be called after the first free throw in a two free throw situation, during live play (when the team has the ball- if the other team has the ball, you cannot call a time out), after the last free throw, and at any other stoppage of play (blood on the floor, official mistake, etc.).
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Coaches or players call timeouts for several reasons. One common reason to call a timeout is to change the momentum of the game. If an opposing player is getting in three-pointer after three-pointer, you might want to call a timeout and hope it disrupts his hot streak. Another reason is to substitute players in. When you want to substitute a player in, the player won't be able to go in until game play stops. Timeouts can do stop a game. Also, another reason to call a timeout is for the coach to tell the players something he wants to say. For example, a coach might call a timeout to tell the players to stop being weak on defense, or to draw up a play when the game is on the line.
A coach can only call time out when his team has the ball, he cannot call it once the other team has it. A player can also call time out.
Anytime the team possesing the ball wants to as long as they have time outs left.
Timeouts are called by the coaches, to discus plays with their players. There is no certain time for timeouts.