In the Trading of a Security, the Dealer's Spread Refers

question 65

Multiple Choice

In the trading of a security, the dealer's spread refers to _____. 

• A)the sum of the bid and asked prices of a security, which represents the dealer's revenue from a security transaction
• B)the sum of the bid and asked prices of a security, which represents the dealer's markup, or profit from a security transaction
• C)the difference between the bid and asked prices of a security, which represents the dealer's markup, or profit from a security transaction
• D)the difference between the bid and asked prices of a security, which represents the dealer's expenses from a security transaction
• E)the ratio of the bid price of a security to its asked price, which represents the dealer's markup, or profit from a security transaction

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