--- title: "Meaning & Key Takeaway of: The lower spreads mean lower costs for…" description: "\"The lower spreads mean lower costs for investors, because Nasdaq investors generally do not trade directly with one another. Instead, they usually buy ..." image: "https://sms4smile.com/quotes/i/bf3/alex-berenson-2775_another_the-lower-spreads-mean-lower-costs-for-i_1166827.png" --- # The lower spreads mean lower costs for investors, because… ![“The lower spreads mean lower costs for investors, because Nasdaq investors generally do not trade directly with one another. Instead, they usually buy and sell from market-makers, brokerage firms that flip shares between buyers and sellers and keep the spread for themselves.” quote by Alex Berenson](https://sms4smile.com/quotes/i/bf3/alex-berenson-2775_another_the-lower-spreads-mean-lower-costs-for-i_1166827.png) [Download](https://sms4smile.com/quotes/i/bf3/alex-berenson-2775_another_the-lower-spreads-mean-lower-costs-for-i_1166827.png) [Open image](https://sms4smile.com/quotes/i/bf3/alex-berenson-2775_another_the-lower-spreads-mean-lower-costs-for-i_1166827.png) > “The lower spreads mean lower costs for investors, because Nasdaq investors generally do not trade directly with one another. Instead, they usually buy and sell from market-makers, brokerage firms that flip shares between buyers and sellers and keep the spread for themselves.” [Alex Berenson](https://sms4smile.com/quotes/author/alex-berenson/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Tight spreads lower costs for investors because market‑makers handle trades, not direct peer‑to‑peer exchanges. **In simple terms:** Narrow spreads reduce investor costs via intermediaries. Key Takeaway Prefer low‑spread venues. Themes finance investing market structure Mood informative neutral Type financial educational When to use this quote - stock trading - portfolio management Key Concepts economics trading strategy Questions to Reflect On - How do spreads affect your trade timing? - When is a market‑maker preferable? A Different Perspective Spread compression can reduce liquidity for some traders. ★ ★ ★ ★ ★ No ratings yet [Buyers](https://sms4smile.com/quotes/about/buyers/) [Costs](https://sms4smile.com/quotes/about/costs/) [Customer](https://sms4smile.com/quotes/about/customer/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investors](https://sms4smile.com/quotes/about/investors/) [Nasdaq](https://sms4smile.com/quotes/about/nasdaq/) [Spreads](https://sms4smile.com/quotes/about/spreads/) [Trade](https://sms4smile.com/quotes/about/trade/) ## Related quotes > [As the Nasdaq soared in 1999 and early 2000, demand for many offerings far exceeded the supply of shares available at the initial offering price.](https://sms4smile.com/quotes/alex-berenson/as-the-nasdaq-soared-in-1999-and-early-2000-demand-for-many-offerings/) [Alex Berenson](https://sms4smile.com/quotes/author/alex-berenson/) > [Bigger spreads mean bigger gaps between what buyers pay and sellers receive. 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