Price takers buy at the ask price and sell at the bid price but the market maker

Fantastic news! We've Found the answer you've been seeking!

Question:

Price takers buy at the ask price and sell at the bid price but the market maker buys at the bid price and sells at the ask price.

Can you explain why its different for price takers and market makers?

Posted Date: May 19, 2024 02:17 AM

See More Questions

Shown here is a list published by Electronics Weekly.com of the top five semiconductor companies in the United States by revenue ($ billions). a. Construct a bar chart to display these data. b....
In a TV picture tube the accelerating voltage is 15.0kV and the electron beam passes through an aperture 0.50 mm in diameter to a screen 0.300 m away. (a) Calculate the uncertainty in the component...
It has been shown that the fertilizer magnesium ammonium phosphate, MgNH4PO4, is an effective supplier of the nutrients necessary for plant growth. The compounds supplied by this fertilizer are...
Joan Smith has the following details from her accounts year ended 31 December 2012. Required: Draw up Joan Smiths income statement (trading and profit and loss account) for the year ended 31 December...
The Excel file Automobile Options provides data on options ordered together for a particular model of automobile. Develop a market basket analysis using the XL Miner association rules procedure with...
Sandra studies opinions about the death penalty. Forty-six participants rate their agreement with the statement "The death penalty should be abolished" on a scale of 1-5, where 1 = totally disagree,...
Assume that y varies inversely as x. If y=8 when x=4, find x when y=2.
Why are cash receipts initially recorded as undeposited funds?
How does a firm account for a transfer of funds from one bank to another bank in QuickBooks Accountant?
In the practice of public accounting an auditor is expected to comply with the Rules of Conduct set forth in the Code of Ethics. Listed below are circumstances that raise a question about an aud...
What payment terms are available in QuickBooks Accountant for vendors?
Part I: During $19 \times 0$ your client, Nuesel Corporation, requested that your conduct a feasibility study to advise management of the best way the corporation can utilize electronic data...
What is your overall evaluation of Elon Musk as both a business leader and a leader in society? What factors might Musk have, similar to the late Steve Jobs, going for him as a leader that people...
What is the amount of total interest dollars earned on a $5,000 deposit earning 6% for 20 years?
Prove the following statements by induction: (a) For all integers $n \geq 0$, the number $5^{2 n}-3^{n}$ is a multiple of 11 . (b) For any integer $n \geq 1$, the integer $2^{4 n-1}$ ends...
(a) Work out $1,1+8,1+8+27$ and $1+8+27+64$. Guess a formula for $\sum_{r=1}^{n} r^{3}$ and prove it. (b) Check that $1=0+1,2+3+4=1+8$ and $5+6+\cdots+9=8+27$. Find a general formula for...
Ethics is a body of knowledge that deals with: A. Primarily legal aspects of health care. B. Trying to get individuals to behave correctly. C. The shoulds and should nots of individual behavior or...

Price takers buy at the ask price and sell at the bid price but the market maker

Question:

Expert Answer:

Students also viewed these finance questions