Explain How the Difference in the Bid and Ask Prices

question 106

Essay

Explain how the difference in the bid and ask prices might be considered a hidden cost to the investor.

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Definitions:

Psychoanalysis

A psychological theory and therapy method developed by Sigmund Freud, focused on unconscious motivations and conflicts as the drivers of human behavior.

Schizophrenics

Individuals diagnosed with schizophrenia, a mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Hostile

Showing or feeling opposition or dislike; unfriendly.

Psychotherapy

A treatment method involving talking and interaction between a therapist and patient to address and alleviate mental health issues.