Stocks trading in a large electronic exchange such as the TSX will normally

Question

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Stocks trading in large electronic exchanges such as the TSX are typically highly liquid, which means that there are many buyers and sellers in the market. This often results in a narrow bid-ask range, which reflects the tight spread between the highest price a buyer is willing to pay (the bid) and the lowest price a seller is willing to accept (the ask). Thinly traded stocks, on the other hand, may have wider bid-ask spreads because there are fewer buyers and sellers in the market, while high transaction costs are more commonly associated with small-cap or penny stocks that trade on over-the-counter markets.

Stocks Trading in a Large Electronic Exchange Such as the TSX