The German stock market is measured by which market index?
A. FTSE
B. Dow Jones 30
C. DAX
D. Nikkei
Preferred stock is like long-term debt in that ___________.
A. it gives the holder voting power regarding the firm's management
B. the preferred dividend is a tax-deductible expense for the firm
C. in the event of bankruptcy preferred stock has equal status with debt
D. it promises to pay to its holder a fixed stream of income each year
You find that the bid and ask prices for a stock are $10.25 and $10.30 respectively. If you purchase or sell the stock you must pay a flat commission of $25. If you buy 100 shares of the stock and immediately sell them, what is your total implied and actual transaction cost in dollars?
A. $50
B. $25
C. $30
D. $55
The bid-ask spread exists because of _______________.
A. market inefficiencies
B. discontinuities in the markets
C. the need for dealers to cover expenses and make a profit
D. lack of trading in thin markets