Price Transparency

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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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  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. Level 2

    A trading service consisting of real-time access to the quotations ...
  4. Transparency

    The extent to which investors have ready access to any required ...
  5. New York Stock Exchange - NYSE

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

    1. An offer made by an investor, a trader or a dealer to buy ...
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