Market Makers
A market maker quotes a stock at 25.00 - 25.10. What is the spread?
The spread is the difference between the ask price ($25.10) and the bid price ($25.00), which equals $0.10. The bid is what the market maker pays to buy, and the ask is what they charge to sell. The spread is their compe
Complete Analysis & Legal Rationale
The spread is the difference between the ask price ($25.10) and the bid price ($25.00), which equals $0.10. The bid is what the market maker pays to buy, and the ask is what they charge to sell. The spread is their compensation for making a market.
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.