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NEW QUESTION: 1
Mary is interested in buying shares of the Lambchops Corporation, which sells over-the-counter. The market maker with the best bid price--$3.15--is Veggie Investments. The market maker with the best ask price--$3.27-is Carnivor Investments. Mary conducts trades in NYSE-listed stocks through her broker, Omnivor and Associates.
Given this scenario, which of the following statements is true?
A. Mary can buy shares of Lambchops Corporation at the bid price of $3.15 by contacting Omnivor and Associates.
B. Mary can buy shares of Lambchops Corporation at the ask price of $3.27 by contacting Omnivor and Associates.
C. Mary can buy shares of Lambchops Corporation at the ask price of $3.27 by contacting Carnivor Investments directly.
D. Mary can buy shares of Lambchops Corporation at the bid price of $3.15 by contacting Veggie Investments directly.
Explanation: Mary can buy shares of Lambchops Corporation for $3.27 from the market maker with the best ask price, Carnivor, by contacting her broker, Omnivor and Associates, which will execute the transaction. The ask price is the price at which market makers in the over-the-counter market are willing to sell the stock, and over-the-counter transactions, like NYSE transactions, are executed by brokers.