Price Improvement
Definition of 'Price Improvement'Attaining a higher bid price, if you are selling a stock, or a lower ask price, if you are buying a stock, than the price quoted at the time your order was placed. |
|
Investopedia explains 'Price Improvement'You will often read in brokerage marketing pitches that price improvement is an opportunity and not a guarantee. Although most brokerages purport "fighting for that last 1/16" there is no guarantee of this actually happening. |
Related Definitions
Articles Of Interest
-
Understanding Order Execution
Find out the various ways in which a broker can fill an order, which can affect costs. -
The Nitty-Gritty Of Executing A Trade
Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out! -
What is a stock ticker?
A stock ticker is a report of the price for certain securities, updated continuously throughout the trading session by the various stock exchanges. A "tick" is any change in price, whether that ... -
Institutional Investors
Learn more about the advantages that financial institutions enjoy when buying and selling securities. -
Weighted Average
Learn how to weigh the relative importances of data points in a calculated average. -
Bid-Ask Spread
Find out more about this frequently referenced, but often misunderstood, term used to describe the price at which a stock is bought or sold at. -
Why Is Liquidity Important?
Learn more on why liquidity is important to consider when examining a stock, next to its share price. -
Understanding The Ticker Tape
We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen. -
Whisper Numbers: Should You Listen?
These unofficial forecasts hold the potential for insider insight - and investment risk. -
Translating Ticker Talk
Stock tickers can say a lot about a company in just a few letters. Find out how to read them.
Free Annual Reports