Question

When matching orders from the public, a specialist is required to use the _______.
a. lowest outstanding bid price and lowest outstanding ask price
b. lowest outstanding bid price and highest outstanding ask price
c. highest outstanding bid price and lowest outstanding ask price
d. highest outstanding bid price and highest outstanding ask price

Answer 1

Answer:

c. Highest outstanding bid price and lowest outstanding ask price.

Explanation:

Matching orders are derivative at the same price.If an investor wants to buy some quantity of a stock and another wants to sell the exact same quantity at the exact same price thus their orders match.

The specialist is require to do the highest outstanding bid price and lowest outstanding ask price.