Price Transparency


DEFINITION of 'Price Transparency'

The accessibility of information on the order flow for a particular stock, allowing knowledge of the quantities of stock being offered and the bids at the various price levels.

BREAKING DOWN 'Price Transparency'

The Nasdaq II quote system provides information on all the bids and asks at various price levels for a particular stock. On the other hand, NYSE quotes display only the highest bid and lowest ask prices. Only the specialist has knowledge of the complete order flow for a stock.

  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. Specialist

    A member of an exchange who acts as the market maker to facilitate ...
  3. Ask

    The price a seller is willing to accept for a security, also ...
  4. Level 2

    A trading service consisting of real-time access to the quotations ...
  5. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  6. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
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