For example, if a market maker posts a bid firm price quote of $25 @ 10K, this tells other dealers and investors that this market maker will buy up to 10,000 shares for a price of $25. If the quote were to be nominal, then the seller of the security could try to negotiate for a better price and the market maker might move on its price - for example, being willing to purchase for $25.75.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
firm quote — A definite price on a round lot bid or offer declared by a market maker on a given security and not identified as a nominal quotation (therefore is not negotiable). Bloomberg Financial Dictionary A market maker s quote which is a price which… … Financial and business terms
quote — An indication of current bids and offers in the market on a particular contract or spread. Chicago Mercantile Exchange Glossary The highest bid price and the lowest offer price for a security at any particular time. An offer to buy or sell a… … Financial and business terms
quote — quote1 W3S2 [kwəut US kwout] v [Date: 1300 1400; : Medieval Latin; Origin: quotare, from Latin quot how many ] 1.) [I and T] to repeat exactly what someone else has said or written quote from ▪ She quoted from a newspaper article. ▪ He quoted a… … Dictionary of contemporary English
Indicative Quote — In forex trading, a currency quote that is provided by a market maker to a trading party but that is not firm. In other words, when a market maker provides an indicative quote to a trader, the market maker is not obligated to trade the given… … Investment dictionary
mandatory quote period — The period during the day when a market maker must make firm ( i.e. guaranteed), two way ( i.e. buy and sell) prices (See firm price) in stocks in which they are registered. It varies from market to market. For domestic SEAQ, it runs from 9.00… … Financial and business terms
Stub Quote — Order placed well off a stock s market price. Stub quotes are used by trading firms when the firm doesn t want to trade at certain prices and wants to pull away to ensure no trades occur. In order to make this happen, the firm will offer quotes… … Investment dictionary
Mandatory quote period — On the London Stock Exchange, the period during which all registered market makers are obliged to display prices. In this period market makers on the Exchange’s quote driven SEAQ and SEAQ International services are obliged to make a firm two way… … Wikipedia
indicative quote — A market maker s price which is not firm. Exchange Handbook Glossary A quote whose price and volume are not guaranteed. That is, market participants are not obliged to deal at the displayed prices or volumes, when their quotes are indicative.… … Financial and business terms
mandatory quote period — The period during the day when a market maker must make firm (that is, guaranteed), two way (buy and sell) prices in the shares in which they are registered. It varies from market to market. Practical Law Dictionary. Glossary of UK, US and… … Law dictionary
Workable Indication — A nominal quote in the municipal bond market at which price a dealer is willing to either buy or sell a particular issue. This differs from a firm quote as revisions to the offer are allowed within a specified time period, usually one hour.… … Investment dictionary