The spread between bid and ask prices of securities provides the security dealer's return for creating a market for a particular security.

Name: The spread between bid and ask prices of securities provides the security dealer's return for creating a market for a particular security.
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The spread between bid (buy price) and ask (sell price) prices represents the compensation to the dealer for the risk and work involved in creating liquidity by making a market for the security.

The Spread Between Bid and Ask Prices of Securities Provides