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The NYSE and Nasdaq Reduced the Tick Size to Pennies

Question 29

Multiple Choice

The NYSE and Nasdaq reduced the tick size to pennies 2001. This reduction in the tick size narrowed the bid-offer spread considerably, which ________.


A) increased the costs to market makers and the profits of the customers.
B) reduced the costs to market makers and the profits of the customers.
C) reduced the costs to customers and the profits of the market makers.
D) increased the costs to customers and the profits of the market makers.

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