Which of the following indicates an investment is less liquid: A Large bid-ask spread B Small bid-ask spread C Higher price D Lower price Check Answer
Added by Ronald H.
Close
Step 1
A large bid-ask spread indicates that there is a significant difference between the price at which buyers are willing to buy (bid) and sellers are willing to sell (ask). This suggests that there is less demand and supply for the asset, making it harder to sell Show more…
Show all steps
Your feedback will help us improve your experience
Danielle Fairburn and 77 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
Answer please
Danielle F.
1. The swap spread for a default-free bond is least likely to reflect the bond’s: A. mispricing in the market. B. illiquidity. C. time value.
Nick J.
Please solve this question.
Yujie W.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD