What Is the Bid-Ask Spread

question 54

Multiple Choice

What is the bid-ask spread?

• A) the difference in price available for an immediate sale of a stock and the immediate purchase of the stock
• B) all of the costs and fees that a stock exchange charges in order to process a transaction
• C) the rise or fall in the value of a stock between the time it is acquired by an investor and sold by that investor
• D) the difference in the selling price of a stock between different exchanges

---

Definitions:

Enthusiasm

Intense and eager enjoyment, interest, or approval.

Yerkes-Dodson Law

A theory that suggests there is an optimal level of arousal for performance, and that too little or too much arousal can adversely affect task performance.

Mental Arousal

The psychological state of being alert and mentally engaged, often in response to stimulation or challenge.

Physical Arousals

Pertains to bodily reactions or physiological responses to stimuli.