Answer to Question #118378 in Finance for Umer

Question #118378
Which of the following statement regarding stock "spread" is correct?

A trader initiating a transaction is said to supply liquidity; the counterparty demands liquidity

The bid-offer spread is the difference between the prices quoted for sale and for purchase.

A stock's bid-offer spread is the sole component of a transaction cost.

All of these answers.
1
Expert's answer
2020-05-27T09:31:15-0400

The bid-offer spread is the difference between the prices quoted for sale and for purchase. 


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