Dealer's spread

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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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Under the quoting convention, stocks with a dealer spread of 3/4 point or greater are quoted in even-eighths (quarters).
Q: And again, is that, in your professional opinion, because those market makers had three-quarter point dealer spreads and did not want to enter what were termed "unprofessional markets"?
Where limit orders dominate the specialist's spread, more of a "market spread" exists, but where few limit orders exist, the specialist spread dominates the limit orders and more of a "dealer spread" exists.
Several times a week, the dealer spreads a Penthouse across the kitchen counter, flips to the stories in the Forum section and jerks off into a waist-level, flip-top lid Rubbermaid trash can.
In contrast to previous research, they find that inside dealer spreads narrow throughout the trading day, especially near the close.
Furthermore, Hamilton |21~ shows that market spreads and modal dealer spreads have similar cross-sectional properties.