Why Is the Ask Price Higher Than the Bid Price

question 59

Multiple Choice

Why is the ask price higher than the bid price?

• A)It represents the gain a market maker achieves.
• B)It represents the gain the stock seller achieves.
• C)It represents the gain the stock buy achieves.
• D)It represents the gain all participants will achieve.

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Definitions:

Creative Solution

An innovative or imaginative problem-solving approach that is often unconventional and yields unexpected results.

Avoiding Conflict-Handling Style

A method of dealing with disagreements by withdrawing or sidestepping to prevent direct confrontation.

Controversy

A prolonged public dispute, debate, or contention, often involving differing opinions or viewpoints on a particular matter.

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The roles or ranks individuals hold within an organizational or social hierarchy.