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.
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider a sequential trade model in which a security has an uncertain value. The value V...
Consider a sequential trade model in which a security has an uncertain value. The value V of the security can either be $150 or $250 with equal probability. The proportion of informed traders is 60%, whereas the proportion of liquidity traders is 40%. As usual, liquidity traders buy or sell with equal probability, whereas informed traders only buy when they know the security price is high, and sell when they know the security price is low. The probability that V...
Consider the securities shown here that are trading at their respective market prices. The two securities...
Consider the securities shown here that are trading at their respective market prices. The two securities pay risk-free cash flows over the next two years. Market Prices CF in one year CF in two years Security A $857 900 0 Security B $181 0 200 Suppose that a security C has cash flows of: 450 in one year and 200 in 2 years and it is trading for a price of $611. What arbitrage opportunity is available? Buy 2 C;...
You plan to buy a scroll saw to make wooden puzzles to sell at holiday time....
You plan to buy a scroll saw to make wooden puzzles to sell at holiday time. The saw will cost $400. The materials for the puzzles cost $9 per puzzle and you expect to sell the puzzles for $12 each. Assuming that you buy the $400 saw today and that you sell 150 puzzles at the end of year 1 and 200 puzzles at the end of year 2, what is the net value today of your investment if interest...
Siyeza Traders is an enterprise that sell motor vehicles in the ordinary course of business at...
Siyeza Traders is an enterprise that sell motor vehicles in the ordinary course of business at a mark-up of 45% on cost. During the current financial period, Siyeza Traders sold eight motor vehicles for a cash price of R80 000 each (15% VAT inclusive). Round your answer off to the nearest Rand. 1. Income earned from the sale of motor vehicles will be classified under ... in the statement of profit or loss and other comprehensive income. (1) Other income...
The Source sells mobile technology and like Best Buy they sell laptops, which make up about...
The Source sells mobile technology and like Best Buy they sell laptops, which make up about 80% of their sales, but instead of selling desktops they sell tablets, which make up the other 20% of their sales. a. What is the probability that 1 of the next 5 devices sold are laptops? b. What is the probability that at least 3 of the next 5 devices sold are tablets? c. What is the probability that at most 2 of the...
a) What are the reasons that make banks wanting to keep capital? What are the reasons...
a) What are the reasons that make banks wanting to keep capital? What are the reasons for banks to avoid keeping too much capital? b) What are off-balance-sheet activities? Why do banks engage in them? Explain how off-balance-sheet activities can contribute to the risk of the bank
What is the meaning of “short sell”? a. Buy shares from a brokerage firm and enter...
What is the meaning of “short sell”? a. Buy shares from a brokerage firm and enter into a forward transaction to sell the shares at today’s price on a future date. b. Buy shares from one brokerage firm and sell the shares to another brokerage firm with a view to make quick money. c. Borrow shares from a brokerage and sell the shares at today’s price with the intention to repay the borrowed stock they sold at some future time...
As interest rates rise, stock prices generally Group of answer choices fall because people will sell...
As interest rates rise, stock prices generally Group of answer choices fall because people will sell stocks and buy interest-bearing securities. fall because returns to stockholders move together with returns to bondholders. rise because firms realize greater profits as their cost of financing drops. rise because people will buy interest-bearing securities and sell stocks.
3. Call options are available with strike prices of $15, $17 ½ and $20 at prices...
3. Call options are available with strike prices of $15, $17 ½ and $20 at prices of $4, $2, and $0.5. Consider a butterfly spread. (BUY X1, SELL 2X2 and BUY X3 where X2=(X1 + X3)/2 & X2 S) A. What are the breakeven stock prices for this trade? B. What are the stock prices that make this a profitable trade? [The correct answer is not 19.50 or 19.00 for the lower bound, it is 15.50] 4.The current price of...
Sally decides to make and sell necklaces to earn money to buy a new computer. She...
Sally decides to make and sell necklaces to earn money to buy a new computer. She plans to charge $ 5.50 per necklace. The function R(n)=5.50n describes the revenue, R(n), she will make by selling. What is the y-intercept of this function, and what does it mean? a. $0, which means that when Sally has sold 0 necklaces, she has made $0. b. $5.50, which means that she makes $5.50 on each necklace. c. $5.50, which means that when Sally...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT