What is the bid-ask spread

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Reference no: EM133674432

For general finance questions on the bid-ask spread:

1. What is the bid-ask spread?

2. How is the bid-ask spread used to determine the price of a security?

3. What is the difference between the bid price and the ask price?

4. Why do bid and ask prices differ?

5. How do market makers determine bid-ask spreads?

6. What is the role of bid-ask spreads in market liquidity?

7. What is a tight bid-ask spread and why is it desirable?

8. How can investors use bid-ask spreads to their advantage?

9. Can bid-ask spreads vary across different securities or markets?

10. What are the factors that affect bid-ask spreads?

11. How can bid-ask spreads impact the profitability of trades?

12. Can you explain the concept of a "hidden" spread?

13. What can cause bid-ask spreads to widen during periods of stock market volatility?

14. How can investors ensure they are getting the best possible bid-ask spread?

Reference no: EM133674432

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