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Answer to Question #118378 in Finance for Umer
Question #118378
Which of the following statement regarding stock "spread" is correct?
A trader initiating a transaction is said to supply liquidity; the counterparty demands liquidity
The bid-offer spread is the difference between the prices quoted for sale and for purchase.
A stock's bid-offer spread is the sole component of a transaction cost.
All of these answers.
A trader initiating a transaction is said to supply liquidity; the counterparty demands liquidity
The bid-offer spread is the difference between the prices quoted for sale and for purchase.
A stock's bid-offer spread is the sole component of a transaction cost.
All of these answers.
Expert's answer
The bid-offer spread is the difference between the prices quoted for sale and for purchase.
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