In a quote-driven market, bid-ask spread is composed of order processing costs, stock holding costs and asymmetric information cost.
在报价驱动交易机制下，买卖价差由指令处理成本、存货成本和非对称信息成本构成。
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This paper builds on and extends existing literature on execution cost and expected return in quote - driven stock markets where market makers play a leading role in determining bid - ask spreads.