The Cost of Buying and Selling a Stock Consists of

question 29

Multiple Choice

The cost of buying and selling a stock consists of

• A) broker's commissions.
• B) dealer's bid-asked spread.
• C) a price concession an investor may be forced to make.
• D) broker's commissions and dealer's bid-asked spread.
• E) broker's commissions, dealer's bid-asked spread, and a price concession an investor may be forced to make.

---

Definitions:

Complex Environment

refers to situations or systems that are intricate and difficult to understand or predict due to numerous interdependent elements and variables.

Departmentalization

The method of segmenting an organization into various departments, each responsible for distinct tasks or functions.

Functional Structure

A form of organization where the company is divided into departments each handling activities related to a particular function such as marketing, production, or human resources.

Divisional Structure

An organizational framework where operations are divided into semi-autonomous divisions, each responsible for its own product lines, operations, and resources.