The stock market A stock market is a market for trading a company's stocks and derivatives. The bid-ask spread in a dealer market represents the profit that a dealer would make on a transaction involving a security. Which of the following statements best describes the bid-ask spread? The sum of the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it. The difference between the closing price of the security and the opening price of the security on the day of the transaction The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it David, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Alexis, is willing to sell 1, 500 shares of the same stock. Unfortunately, David and Alexis don't know one another, and must complete their transactions using the stock exchange's market-making dealer. XYZ's market-maker is willing to sell her shares for $25.05 per share and purchase additional shares for $24.50 per share. Select the most appropriate values in the following table: It the market-maker is willing to purchase the entire block of 1, 500 shares from Alexis and, from that block, resell 1,000 shares to David, then the market-maker's not profit from David's transaction -excluding any inventory effects-will be