Which of these is the bid- ask spread?
A)Part of the cost of trading shares
B)The opportunity cost of selling shares
C)The difference between the best buy and the best sell quote
D)Both A and B
E)Both A and C

Question

Quizplus · Accepted Answer

The bid-ask spread is the difference between the best buy and the best sell quote, making choice C correct. It is also part of the cost of trading shares, as buyers must pay slightly more than the current market price to buy shares, and sellers must sell at slightly less than the current market price to sell, making choice A correct. Choice B is not applicable to the bid-ask spread. Therefore, option E is the best choice, as it includes both correct explanations.

Which of These Is the Bid- Ask Spread