Which of the Following Statements Is Incorrect

question 4

Multiple Choice

Which of the following statements is incorrect?

• A)Market-makers take positions to capitalize on the discrepancy between the prevailing stock price and their own valuation of a stock.
• B)Specialists and market-makers may take the opposite position of uninformed investors and therefore stand to benefit if their expectations are correct.
• C)For each stock that is traded in the Nasdaq market, there are 50 market-makers on average.
• D)The spread quoted for a given stock may vary among market-makers.

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Definitions:

Capital Goods

Assets with a long lifespan that are employed in the creation of goods and services, including machinery, equipment, and buildings.

Economic System

The structure and methods by which a society decides on the allocation of resources and distribution of goods and services.

Goodwill

The intangible asset that arises as a result of the reputation, brand, or customer relations of a business, adding value beyond its tangible assets.

Intangible Capital

Assets that are not physical in nature, such as intellectual property, brand recognition, and human capital, which can contribute to a company's value.