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Investopedia explains 'Inside Quote'
Many retail investors do not realize that the price of a security displayed is actually only the price at which the last trade occurred. If the market for a security is highly liquid and trading is frequent, then this may be a good indication of the current fair market value of the security. However, in less liquid securities, it is important to consider the inside quotes at a given moment, since the last trade may have taken place some time ago, and thus may not be indicative of the current market prices. When trading a less liquid security, traders often use a "limit order to avoid being surprised by the price at which the order executes."
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