Which of the following statements hold true for bid price?
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A. B. C. D.D
The correct answer is D. It is the price at which a broker is willing to buy a certain security.
Explanation:
The bid price is the highest price that a buyer, which is typically a market maker or a broker, is willing to pay for a security at a given time. The bid price represents the demand for the security in the market and the maximum price that a buyer is willing to pay for the security. It is also known as the buy price or the offer price.
When a seller wishes to sell a security, they can either accept the current bid price or place a sell order with a higher asking price, which will become the new bid price if there are buyers willing to purchase at that price. In other words, the bid price reflects the highest price that a buyer is currently willing to pay for a security, and the ask price represents the lowest price at which a seller is willing to sell a security.
Option A is incorrect because it refers to the asking price, which is the price at which a broker is willing to sell a security.
Option B is incorrect because it refers to units from a funded company, which is not related to the bid price.
Option C is incorrect because it refers to the asking price of the seller, not the bid price of the buyer.