Which of the following statements is TRUE?

a. Stock dealers are not allowed to make money on the difference between stock purchase prices and stock sale prices.

b. A bear market. is a prolonged rising market, one in which stock prices in general are Increasing.

c. The ask price is the price at which a dealer is willing to sell, and the bid price Is the price at which a dealer is willing to buy.

d. A bull market is a prolonged declining market, one in which stock prices in general are decreasing.

Question

Business

Jimmy Travis

3 August, 05:17

Which of the following statements is TRUE?

a. Stock dealers are not allowed to make money on the difference between stock purchase prices and stock sale prices.

b. A bear market. is a prolonged rising market, one in which stock prices in general are Increasing.

c. The ask price is the price at which a dealer is willing to sell, and the bid price Is the price at which a dealer is willing to buy.

d. A bull market is a prolonged declining market, one in which stock prices in general are decreasing.

+2

Answers (1)

Know the Answer?

Maverick Rasmussen · Answer 1

The correct answer is letter "C": The ask price is the price at which a dealer is willing to sell, and the bid price Is the price at which a dealer is willing to buy.

Explanation:

While trading securities, two prices will be shown: the bid and the ask. The bid is the maximum price an investor is willing to pay to purchase a security. On the other side we have the ask price which is the minimum price an investor is willing to accept to sell the security.