Multiple Choice
Which of the following statements is incorrect?
A) Market-makers take positions to capitalize on the discrepancy between the prevailing stock price and their own valuation of a stock.
B) Specialists and market-makers may take the opposite position of uninformed investors and therefore stand to benefit if their expectations are correct.
C) For each stock that is traded in the Nasdaq market, there are 50 market-makers on average.
D) The spread quoted for a given stock may vary among market-makers.
Correct Answer:
Verified
Correct Answer:
Verified
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