Dealer's spread

Dealer's spread

Dealer's Spread

The amount a dealer earns by buying a security and then selling it to an investor. The dealer's spread is the difference between the dealer's purchase price and his/her sale price. The dealer's spread is how dealers (other than broker-dealers) make most of their profits.
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Because each Nasdaq stock has at least two market makers, a dealer's spread is not necessarily the inside spread.