What is the bid-ask spread referred to?
A)The difference bond asking and bidding prices.
B)The stock markets valuation of stock.
C)The difference between the stock's bid and asking price.
D)The reduction of the stock's active price.
E)None of the options.

Question

Quizplus · Accepted Answer

The bid-ask spread is the difference between the highest price a buyer is willing to pay for a stock (bid price) and the lowest price a seller is willing to accept (ask price). This spread represents the transaction cost of buying and selling stocks and is an important factor to consider when making investment decisions. A tighter bid-ask spread indicates a more liquid market and may be more favorable for investors.

What Is the Bid-Ask Spread Referred To