Which of the Following Statements Is False

question 25

Multiple Choice

Which of the following statements is false?

• A) On the 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 price and sell at the bid price, 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.

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Definitions:

Puzzle

A problem or toy designed to test ingenuity or knowledge, requiring a solution by thinking or experimentation.

Susceptibility

The degree to which an individual is prone or likely to be affected by a particular condition, disease, or influence.

Piaget's Cognitive Developmental Theory

A theory by Jean Piaget that explains the stages of cognitive development from infancy to adulthood and how children construct a mental model of the world.

Preoperational Child

A stage in Piaget's theory of cognitive development where children from ages 2 to 7 engage in symbolic play and struggle with logic.