In the stock market parlance, “spread” indicates:
1. Difference between the buying and selling prices of a share
2. Ease or difficulty in buying or selling shares
Which among the above is / are correct?
The difference between the buying and selling prices of a share is called spread. Higher the liquidity of a share lower its spread and vice versa. Liquidity refers to how easy it is to buy and sell shares without seeing a change in price. Thus, both statements are correct.
This question is a part of GKToday's Integrated IAS General Studies Module