A security dealer's return for creating a market for a particular security is measured by the:
A) Commission or fee charged
B) Interest earned on securities that eventually are traded
C) Spread between bid and asked prices
D) Capital gain on a traded security
E) None of the above

Question

Quizplus · Accepted Answer

The return for a security dealer in creating a market for a particular security is primarily measured by the spread between the bid (buy) and asked (sell) prices. This spread represents the dealer's profit margin for facilitating trades between buyers and sellers.

A Security Dealer's Return for Creating a Market for a Particular