Answer:
C. the need for dealers to cover expenses and make a profit
Step-by-step explanation:
In the market for securities there are two pricing of securities.
The ask price is the price at which the buyer is willing to purchase a security.
The ask price or the offer price is price at which the seller of a security is willing to sell it. Ask price can be firm or negotiable.
Bid ask spread is the difference between the highest amount a buyer is willing to buy a security and the lowest price at which a seller is willing to sell it.
This spread exists because dealers need to cover expenses and make a profit