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x 3. The stock market A stock market is a public market for trading a company's In a dealer market, some dealers hold a certain

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x 3. The stock market A stock market is a public market for trading a company's In a dealer market, some dealers hold a certain inventory of specific securities and create a liquid market by purchasing and selling their inventaries These dealers make a market and are thus called market makers, Agents in the market bring investors to the dealers through a network of terminals and electronic systems. Where do denler profits come from in a dealer market? The bid-ask spread O Dividend payments Interest charges Cole, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Abigail, is willing to sell 1,500 shares of the same stock. Unfortunately, Cole and Abigail 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 $27.65 per share and purchase additional shares for $26.50 per share. Select the most appropriate values in the following table: Term Value Bid price Ask price Bid-ask spread If the market maker is willing to purchase the entire block of 1,500 shares from Abigail and, from that block, resell 1,000 shares to Cole, then the market maker's net profit from Cole's transaction-excluding any inventory effects-will be Grade It Now Save & Continue Chapter 2 Assignment 3. The stock market A stock market is a public market for trading a company's equities In a dealer market, some dealers hold a certain inventory es and create a liquid market by pure These dealers make a market and are thus called market debt securities the market bring investors to the de and electronic systems. Where do dealer profits come fronhouder market? Cole and Abigail don't know one another and must complete their transac is willing to sell her shares for $27.65 per share and purchase additional following table: ry Term Value Bid price Ask price $27.65 Bid-ask spread $26.50 If the market maker to purchase the entire block of 1,500 shar $31.80 market maker's net Cole's transaction-excluding any invent ols Abigail 't know one another and must complet is willing to sell her shares for $27.65 per share and purcha following table: luctory Term Value Bid price Ask price Bid-ask spread $26.50 If the market maker $27.65 to purchase the entire block market maker's net Cole's transaction-excludin $41.47 is willing to sell her shares for $27.65 per share and following table: $1.15 Term $89.64 $26.50 Bid price Ask price Bid-ask spread If the market maker is willing to purchase the entire market maker's net profit from Cole's transaction- Interest charges Cole, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Abigail, is willing to sell 1,500 shares of the same stock. Unfortunately, Cole and Abigail 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 $27.65 per share and purchase additional shares for $26.50 per share. Select the most appropriate values in the following table: Term Value Bid price $575.00 Ask price $484.00 Bid-ask spread $1,725.00 $1,150.00 If the market maker is willing to purchase the entire block of 1,500 shares from Abigail and ock, resell 1,000 shares to Cole, then the market maker's net profit from Cole's transaction-excluding any inventory effects-will be Grade It Now Save & Continue Continue without saving

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