Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)On Nasdaq, shares can and do have multiple market makers who compete with each other. Each market maker must post bid and ask prices in the Nasdaq network where they can be viewed by all participants.
• B)Bid prices exceed ask prices.
• C)Because customers always buy at the ask and sell at the bid, the bid-ask spread is a transaction cost investors have to pay in order to trade.
• D)On the floor of the NYSE, market makers (known on the NYSE as specialists)match buyers and sellers.

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Definitions:

Three-strip Technicolor

Three-strip Technicolor is a color film process that uses three strips of film to capture the red, green, and blue color components, introduced in the 1930s to create vivid color movies.

Sound Cinema Technology

The technology enabling the synchronization of motion picture with sound, revolutionizing the film industry in the late 1920s.

Phonograph

An early sound-reproducing machine that uses cylinders or discs to record and playback sound, invented in the late 19th century.

Vitaphone

An early sound film system created by Warner Bros. that synchronized a film's soundtrack stored on phonograph records.