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The bid-ask spread on a security is the difference between: A. the price of the

ID: 2384483 • Letter: T

Question

The bid-ask spread on a security is the difference between: A. the price of the security when an individual sells it and the price of a security when an investment bank sells the security. B. the price a dealer pays for a security and the price at which the company sells the security. C. the price at which a dealer buys and sells the security. D. the difference between the security's price in the initial public offering and the security's price when it sells on the stock exchange. The bid-ask spread on a security is the difference between: A. the price of the security when an individual sells it and the price of a security when an investment bank sells the security. B. the price a dealer pays for a security and the price at which the company sells the security. C. the price at which a dealer buys and sells the security. D. the difference between the security's price in the initial public offering and the security's price when it sells on the stock exchange.

Explanation / Answer

Answer C.

C. The Price at which a dealer buys and sells the Security.

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