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:

Sales

The total amount of goods or services sold over a specific period of time, generating revenue for a business.

Accounts Payable

Liabilities owed by a company to creditors for goods and services received but not yet paid for.