Which of the Following Statements Is False

question 30

Multiple Choice

Which of the following statements is false?

• A) On Nasdaq, stocks can and do have multiple market makers who compete with each other. Each market maker must post bid and ask prices in the Nasdaq network where they can be viewed by all participants.
• B) Bid prices exceed ask prices.
• C) Because customers always buy at the ask and sell at the bid, the bid-ask spread is a transaction cost investors have to pay in order to trade.
• D) On the floor of the NYSE, market makers (known on the NYSE as specialists) match buyers and sellers.

---

Definitions:

Life, Liberty, Property

Fundamental rights believed to be inherent and protected by law, including the right to live, the right to freedom, and the right to own property.

Equal Protection

A legal principle under the 14th Amendment of the U.S. Constitution stating that no state shall deny to any person within its jurisdiction the equal protection of the laws.

Interstate Commerce

Trade, traffic, or transportation involving the passing of goods or individuals across state lines within the United States.

Advertising

The act or job of creating promotional materials for goods and services.