Stella places a market order with her broker to buy 1 000 shares of Telstra Corp. The broker buys 1 000 shares at $15.40 each, and sells them to Stella at $15.55 each. He also charges a commission of $12.00. What is the bid-ask spread per share in this case?

Question

Quizplus · Accepted Answer

The bid-ask spread per share is the difference between the price at which the broker bought the shares ($15.40) and the price at which they sold them to Stella ($15.55), which is $0.15.

Stella Places a Market Order with Her Broker to Buy