What Is the Bid-Ask Spread

question 4

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 that 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

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Definitions:

Common Fixed Costs

Costs that are shared by multiple segments or products of a company and do not change with the volume of production for any single product.

Absorption Costing

Absorption costing is an accounting method where all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) are included in the cost of a produced unit.

Profits

The financial gain calculated by subtracting total expenses from total revenue.

Units Produced

The total number of finished products that a company manufactures during a specific period.