A Market Maker Always Avoids the Cost of the Bid-Ask

question 47

True/False

A market maker always avoids the cost of the bid-ask spread.

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Definitions:

Myelinated Axons

Nerve fibers covered with myelin, a protective sheath that enhances the speed and efficiency of electrical signal transmission in the nervous system.

Local Potential

Small changes in membrane potential that are crucial in the propagation of nerve impulses and can lead to an action potential if they reach a certain threshold.

Depolarization Event

A temporary change in a cell's membrane potential, making it more positive, typically associated with the initiation of nerve impulses or muscle contractions.

Stimulus Strength

The intensity of a stimulus, which can influence the magnitude of response in sensory and other physiological systems.