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.

---

Definitions:

Transatlantic Purchases

Transactions involving the buying and selling of goods or services across the Atlantic Ocean, between Europe and the Americas.

Americanization Committee

A group or effort aiming to assimilate immigrants into American culture, promoting the adoption of American customs, language, and values among foreign-born residents.

Southeastern European Immigrants

Individuals from countries in Southeastern Europe who migrated, especially in large numbers in the late 19th and early 20th centuries, to countries including the United States, seeking better opportunities.

Tax Act

Legislation enacted to impose taxes or alter the tax structure. Various Tax Acts have been passed in different jurisdictions affecting income, property, sales, and other taxes.