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Definition of 'Bid-to-Cover Ratio'
A ratio that compares the number of bids received in a Treasury security auction to the number of bids accepted.
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Investopedia explains 'Bid-to-Cover Ratio'
A ratio above 2.0 indicates a successful auction comprised of aggressive bids. A low ratio is an indication of a disappointing auction, marked by a wide bid-ask spread.
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If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market.
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Knowing how the primary and secondary markets work is key to understanding how stocks trade.
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