The difference between the price a dealer will pay for a stock and the price for which a dealer will sell a stock is the ________.

Question

Quizplus · Accepted Answer

The difference between the buying and selling price of a stock is called the "spread." It represents the profit margin for the dealer or broker. Option A, margin, refers to the amount of money an investor must deposit to control a certain amount of stock. Option B, offer margin, is not a financial term. Option C, dealer concession, refers to a discount or commission offered by dealers to customers. Option E, profit margin, is a broader term that refers to the amount of profit earned by a company or individual after deducting all expenses.

The Difference Between the Price a Dealer Will Pay for a Stock