Question

A broker/dealer bought ABC stock at 8 for its inventory position. A month later when the inter-dealer market for ABC was 10.50 -- 11.25, the broker/dealer sold the stock to a customer. The basis for the dealer's markup will be:[A] 8.00[B] 8.75[C] 10.50[D] 11.25

Answer 1

Answer:

[D] 11.25

Step-by-step explanation:

Broker/dealers must trade with customers based on the current bid and ask.

10.50 Bid for customers selling

11.25 Ask for customers buying