what is spread? class12
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The bid–ask spread, is the difference between the prices quoted for an immediate sale and an immediate purchase for stocks, fututes contracts, options, or currency pairs.
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An economic spread is a measure of a company's ability to make money on its capital investments. Simply put, if the cost of capital exceeds the return on invested capital, the company is losing money: what the company is doing with the capital is not providing enough to cover the cost of borrowing or using it.
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