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Firm Quote

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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.
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Investopedia explains '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.

Related Definitions

  •

    Bid

    1. An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to ...
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  • Ask

    The price a seller is willing to accept for a security, also known as the offer price. Along with the price, the ask quote will generally also stipulate the amount of the security ...
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  • Ask Size

    The amount of a security that a market maker is offering to sell at the ask price. The higher the ask size, the more supply there is that people want to sell. When a buyer seeks to ...
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    • Bid Size

      The number of shares being offered for purchase at a specified bid price, that a buyer is willing to purchase at that bid price. For example, if an investor wants to buy 200 shares of ...
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    • Nominal Quotation

      A quote generated by a futures exchange or broker for contracts that have not traded for a specific period of time. Also referred to as a "nominal quote" or "nominal price".
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    • Market Maker

      A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market maker competes for ...
      Read More »

    • Dealer

      1. An individual or firm willing to buy or sell securities for their own account.2. One who purchases goods or services for resale to consumers.
      Read More »

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