You Are a Dealer and Post a Price of $100

question 10

Multiple Choice

You are a dealer and post a price of $100.00 to $100.50 for a stock.There are more sell orders than buy orders and you find your inventory is growing.What is the correct way to adjust your quotes?

• A) Lower the bid price and then lower the ask price.
• B) Lower the ask price and then lower the bid price.
• C) Raise the ask price and then raise the bid price.
• D) Raise the bid price and then raise the ask price.
• E) Do nothing-orders arrive randomly and they will self-adjust.

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Definitions:

Women

Female human beings; often discussed in numerous contexts including social, biological, cultural, and political.

Middle-Aged

Refers to the period in human life roughly between the ages of 40 and 65, often characterized by stability in relationships, career, and personal life.

Low Tar Cigarettes

Cigarettes that are designed to produce less tar and nicotine when smoked, in an effort to be a "healthier" alternative to regular cigarettes.

Nicotine

A stimulating and addictive substance found in tobacco that affects the nervous system and is a major component in cigarettes.