The spread is the
A)difference between the bid and ask prices
B)commission charged by the broker
C)difference between the purchase and sale prices
D)difference between the commissions charged by full service and discount/online brokers

Question

Quizplus · Accepted Answer

The spread refers to the difference between the bid (the price at which a buyer is willing to purchase a security) and ask (the price at which a seller is willing to sell a security) prices. This difference represents the profit margin for the market maker or broker facilitating the transaction.

The Spread Is the