A broker executes securities transactions between two parties and charges a fee reflected in the bid-ask spread.

Question

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A broker is an intermediary that facilitates securities transactions between buyers and sellers. They charge a fee known as the bid-ask spread, which is the difference between the buy and sell price of a security. This fee is typically expressed as a percentage of the transaction value and is reflected in the market price of the security.

A Broker Executes Securities Transactions Between Two Parties and Charges