Firm Quote

DEFINITION of 'Firm Quote'

A price quote on a security, made by a dealer or market maker, that guarantees a bid or ask price up to the amount quoted. This differs from a nominal quote wherein the price and quantity of a bid or ask quote are not firmly posted.

BREAKING DOWN 'Firm Quote'

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.

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RELATED FAQS
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    The difference between these two market systems lies in what is displayed in the market in terms of orders and bid and ask ... Read Answer >>
  2. Why are the bid prices of T-bills higher than the ask prices? Aren't bids supposed ...

    Yes, you are correct that the ask price of a security should typically be higher than the bid price. This is because people ... Read Answer >>
  3. What do the bid and ask prices represent on a stock quote?

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  4. Is it actually possible that my trades consistently get executed higher than the ...

    Can one of the best brokerage names fail to execute trades on market orders consistently at higher (buy o... Read Answer >>
  5. What do the numbers that follow the bid and ask numbers in stock quotes represent? ...

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