What Is the Bid-Ask Spread

question 54

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 the 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:

Progressive

A term describing a tax system where the tax rate increases as the taxable amount increases, or broadly referring to policies or principles aiming at promoting social advancement.

Regressive

A term often used in taxation that describes a situation where the tax rate decreases as the taxable amount increases, placing a heavier burden on lower-income individuals.

Transfer Payments

Transfer payments are the distributions of money by the government to individuals without the requirement of goods or services in return, such as welfare or social security.

Income Redistribution

A policy or mechanism aimed at transferring income from certain individuals or groups to others, often to reduce economic inequalities.