Question

Traders wanting to buy a security make ______ prices; traders wanting to sell make ______ prices.

Traders wanting to buy a security make ______ prices; traders wanting to sell make ______ prices.

Homework Answers

Answer #1
When a trader want to buy a security the trader makes a bid price.
On the other hand, when a trader wants to sell a security the trader
makes an ask price.
When a security is listed on an electronic exchange like the Nasdaq or the NYSE (New york stock exchange),
the highest bid price gets quoted as the bid price and the lowest ask price gets quoted as the
ask price.
Traders wanting to buy a security make bid prices; traders wanting to sell make ask prices.
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