Which of the following statements is true?
A)A stock is not allowed to be traded on both the NYSE and Nasdaq.
B)Trading on Nasdaq is conducted by auction.
C)The NYSE has a significantly higher trading volume than does Nasdaq.
D)Most Nasdaq stocks have multiple market-makers.

Question

Quizplus · Accepted Answer

Most Nasdaq stocks have multiple market-makers. Most Nasdaq stocks have multiple market-makers, meaning there are multiple firms that are buying and selling a particular stock, which can increase liquidity and potentially lower bid-ask spreads. Choices A and C are both false as many stocks are listed on both the NYSE and Nasdaq and the trading volume of the two exchanges can vary depending on market conditions. Choice B is also false as trading on Nasdaq is primarily conducted electronically rather than through an auction system.

Which of the Following Statements Is True