Which of the following terms is associated with secondary (as opposed to primary) equity markets? A....
Which of the following terms is associated with secondary (as opposed to primary) equity markets?
- A. initial public offering
- B. bid-ask spread
- C. seasoned equity offering
- D. underwriter's spread
- E. shelf registration
Homework Answers
Option 'B' is correct
Bid-Ask spread
Bid-Ask spread is associated with secondary Equity markets. In Primary markets shares are issued at price which is stated in the prospectus.
The Bid-Ask spread is the amount by which the ask price exceeds the bid price for an asset in the Market. The bid-ask spread is essentially the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept.
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Which of the following terms is associated with secondary (as opposed to primary) equity markets? A....
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