The Difference Between the Bid and the Ask Price Is

question 42

Multiple Choice

The difference between the bid and the ask price is known as the:

• A) commission.
• B) premium.
• C) quote.
• D) spread.

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Definitions:

Dividends Per Share

The total amount of declared dividends for every share of common stock issued, divided by the number of outstanding shares.

Common Stock Offering

The process by which a corporation issues new shares of common stock to the public.

Dividend Tax Credit

Tax formula that reduces the effective tax rate on dividends.

Canadian Corporations

Companies incorporated under the laws of Canada, subject to Canadian corporate regulations and taxation.