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

10-03-2020
Business

contestada

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.

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Answer:

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.