Series 7 - General Securities Representative Exam
Preview Mode
Which of the following describes the inside market?
The highest bid price and lowest ask price
A
The lowest bid price and the highest ask price
B
The highest bid price and highest ask price
C
The lowest bid price and the lowest ask price
D
Explanations
The inside market is the the highest bid price and lowest ask price. The difference between the 2 is known as the spread. If prices have a wide range, the spread is wide, if they are close to each other; the market is tight or the spread is narrow