Trading Over The Counter And NASDAQ Securities - Nominal NASDAQ Quotes

All quotes published over the NASDAQ workstation are firm quotes. A dealer who fails to honor their quotes has committed a violation known as backing away. Dealers who provide quotes over the phone, which are clearly indicated as being subject or nominal, cannot be held to trade at those prices. NASDAQ qualifiers are:



  • “It looks like”
  • “It’s around”
  • “Subject”
  • “Nominal”
  • “Work it out”
  • “Last I saw”

A response of “it is’ would indicate a firm quote. A firm quote is always good for at least one round lot or 100 shares.



Payments For Market Making


Related Articles
  1. Professionals

    MUNICIPAL BOND TRADING

    Municipal Bond Trading Municipal bonds trade over the counter in the secondary market much like OTC stocks. Municipal bond dealers provide quotes on the bonds that they deal in, to other broker ...
  2. Professionals

    D. NASDAQ

    Securities that are not listed a centralized exchange trade over the counter or on the NASDAQ. NASDAQ stands for National Association of Securities Dealers Automated Quotation System. It is the ...
  3. Professionals

    Introduction

    Securities that are not listed on any of the traditional exchanges trade over the counter or on the NASDAQ. NASDAQ stands for National Association of Securities Dealers Automated Quotation System. ...
  4. Professionals

    Firm Quote Rule

    SEC Rule 11Ac1-1 states that all market makers who publish quotes over the NASDAQ system must execute an order that is presented to the firm, at a price and size that is at least equal to its ...
  5. Professionals

    Piggybacking A Quote

    If an OTC BB security has been quoted by another dealer for a minimum of 30 days, they may simply enter their own quote by piggybacking the current dealer’s quote so long as: The security ...
  6. Professionals

    Order Qualifiers

    FINRA Series 6 Exam Study Guide - Order Qulaifiers. This section deals with different types of orders and quotations.
  7. Professionals

    The National Association of Securities Dealers Automated Quotation System (Nasdaq)

    FINRA Series 6 Exam Study Guide - The National Association of Securities Dealers Automated Quotation System (Nasdaq). Deals with types of security issues and stock quotation service levels
  8. Professionals

    Registering As A Market Maker

    All broker dealers who wish to register as a market maker must file an application with FINRA and demonstrate that they are in good standing with the authority and that the firm meets the capital ...
  9. Professionals

    NASDAQ Subscription Levels

    Broker dealers will subscribe to the NASDAQ workstation services that meet their firm’s requirements. The levels of service are: Level I: NASDAQ Level I subscription service provides information ...
  10. Investing Basics

    Understanding NASDAQ

    NASDAQ is an acronym that stands for the National Association of Securities Dealers Automated Quotation system.
RELATED TERMS
  1. Firm Quote

    A price quote on a security, made by a dealer or market maker, ...
  2. Nominal Quotation

    A quote generated by a futures exchange or broker for contracts ...
  3. Workable Indication

    A nominal quote in the municipal bond market at which price a ...
  4. Indicative Quote

    In forex trading, a currency quote that is provided by a market ...
  5. Privilege Dealer

    An individual or a securities firm that is registered as a market ...
  6. Handle

    The whole number part of a price quote. In a quote the handle ...
RELATED FAQS
  1. Why is currency always quoted in pairs?

    When reading currency quotes, you have probably noticed that there is only a single quote for a pair of currencies. Currency ... Read Answer >>
  2. How do nominal interest rates in finance differ from the nominal rate of interest ...

    Read about the subtle difference between a financial instrument's nominal interest rate of return and the general nominal ... Read Answer >>
  3. Where can I find all of the stocks in the Nasdaq Composite Index?

    Few stock market indices are as misunderstood as the Nasdaq Composite Index. Due to the burst of the dotcom bubble in 20 ... Read Answer >>
  4. Under what circumstances is the nominal value out of line with the real value of ...

    Learn more about nominal stock values and market values. Explore causes of differences between nominal and real values for ... Read Answer >>
  5. Is the nominal value of a security ever also the real value?

    Learn more about nominal values and real values. Find out how these market values change and if they may ever converge for ... Read Answer >>
  6. If markets give information on value through price, how can nominal values be out ...

    Learn more about nominal values, real values and how these two measurements differ. Explore the impact of inflation and deflation ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center