The _____ price indicates how much the market maker will pay per share to buy a stated quantity of the stock.

Question

Quizplus · Accepted Answer

The bid price is the price that a market maker is willing to pay to buy a stock, so this is the best choice. The ask price is the price at which a market maker is willing to sell a stock, and the spread is the difference between the bid and ask prices. Margin refers to the amount of money an investor must put up as collateral in order to trade on margin.

The _____ Price Indicates How Much the Market Maker Will