Secondary Market
A stock is quoted at 45.50 - 45.75. An investor wanting to purchase 100 shares would pay:
Investors buy at the ask (offer) price. The ask price is $45.75, so 100 shares would cost $45.75 x 100 = $4,575. The bid price of $45.50 is what the investor would receive if selling.
Complete Analysis & Legal Rationale
Investors buy at the ask (offer) price. The ask price is $45.75, so 100 shares would cost $45.75 x 100 = $4,575. The bid price of $45.50 is what the investor would receive if selling.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Secondary-market / antifraud framework including Section 10(b) (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.