The difference between the ask price and the bid price is known as the spread.

Name: The difference between the ask price and the bid price is known as the spread.
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Question

Quizplus · Accepted Answer

The statement is true. The ask price is the price at which a seller is willing to sell a security or asset, while the bid price is the price at which a buyer is willing to buy. The spread is the difference between these two prices and represents the transaction cost for trading the security or asset.

The Difference Between the Ask Price and the Bid Price