The further down the dealer is in the distribution process, _______ the price the investment firm mush pay for shares.Multiple choice question.lowerhigher
Question
The further down the dealer is in the distribution process, _______ the price the investment firm mush pay for shares.Multiple choice question.lowerhigher
Solution
The correct answer is "higher". The further down the dealer is in the distribution process, the higher the price the investment firm must pay for shares. This is because as you move down the distribution process, there are more intermediaries involved, each of whom adds their own markup to the price.
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