Market Makers
If a stock is quoted at 45.50 - 45.75, the bid-ask spread is:
The bid-ask spread is the difference between the ask price (what you pay to buy) and the bid price (what you receive when selling). In this case, $45.75 - $45.50 = $0.25. The spread represents the market maker's profit o
Complete Analysis & Legal Rationale
The bid-ask spread is the difference between the ask price (what you pay to buy) and the bid price (what you receive when selling). In this case, $45.75 - $45.50 = $0.25. The spread represents the market maker's profit on a round-trip transaction.
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 concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.