Which of the Following Statements Is FALSE

question 31

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.

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Definitions:

Working Memory

A cognitive system responsible for temporarily holding and manipulating information for tasks such as reasoning and understanding.

Social Security Number

A unique numerical identifier assigned to U.S. citizens and some residents, primarily for tax reporting and social welfare benefits.

Left Frontal Lobe

The region of the frontal lobe situated in the left hemisphere of the brain, associated with reasoning, motor skills, higher level cognition, and expressive language.

Explicit Memories

Memories that can be consciously recalled and described, including knowledge of facts and experiences.