Quotation
Definition of 'Quotation'A very common term which actually refers to two numbers - the highest bid price currently available for a security or commodity and the lowest ask price currently available for the same security/commodity. |
|
Investopedia explains 'Quotation'A security's or commodity's quotation represents two pieces of information: the price an investor would need to pay to purchase an asset at a particular moment in time (the lowest price "asked" by sellers) and the price an investor would receive for the same asset if they sold it at the same time (the highest "bid" by potential buyers). Taken together, the difference between the two represents the liquidity cost an investor incurs when trading an asset, since they must buy at the bid price and sell as the ask price. |
Related Definitions
Articles Of Interest
-
Understanding The Ticker Tape
We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen. -
Reading Financial Tables Tutorial
Learn about six common types of financial tables and figure out how to interpret them. -
A Top-Down Approach To Investing
Use a global view to determine which stocks belong in your portfolio. -
A Look At Primary And Secondary Markets
Knowing how the primary and secondary markets work is key to understanding how stocks trade. -
Invest With A Thesis
Writing down a thesis for every investment may seem almost too simple to be effective, but lessons from behavioral finance tell us that bias and fear of loss often cloud our views, even for the ... -
The Basics Of The Bid-Ask Spread
The bid-ask spread is essentially a negotiation in progress. To be successful, traders must be willing to take a stand and walk away in the bid-ask process through limit orders. -
How Bitcoin Works
Bitcoin is a digital currency that exists almost wholly in the virtual realm, unlike physical currencies like dollars and euros. A growing number of proponents support its use as an alternative ... -
Why Companies Issue Bonds
When companies need to raise money, issuing bonds is one way to do it. A bond functions like a loan between an investor and a corporation. -
10 Common Financial Terms Every Newbie Needs To Know
In order to get a better understanding of what you read in markets news, we’ll briefly explore the terms you commonly encounter. -
What Determines Your Cost Basis?
In any transaction between a buyer and seller, the initial price paid in an exchange for a product or service will qualify as the cost basis. When it comes to securities and related financial ...
Free Annual Reports