Quoted Price

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Offline Md. Al-Amin

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Quoted Price
« on: February 24, 2014, 12:14:33 PM »
Quoted Price

Quoted price refers to stock, bond or other security quotes. A stock quote is an estimate of price or a price at which one party is willing to buy or sell a certain number of shares of stock from the other. A quoted price consists of a bid price and an ask price.

How it works/Example:

For example, a quoted price for Company XYZ stock includes the real-time bid price, ask price, quote size, price of the last trade, size of the last trade, the high price for the day and the low price for the day. Quotations are available from the exchanges online, via the media or in financial publications.

A level I quoted price is the real-time bid and ask price for a security that trades on the Nasdaq or over-the-counter markets. They do not disclose which market makers are bidding for or offering the security, whether there are limit orders on the security, or the size of potential trades at a particular price.

A level II quoted price is a set of real-time trading information for a security that trades on the Nasdaq or over-the-counter markets. It includes the real-time bid price, ask price, quote size, price of the last trade, size of the last trade, the high price for the day, the low price for the day and a ranked list of the real-time best bid and ask prices from participating market makers.

A level III quoted price includes all of the above but also allows a market maker to change its bids, offers and order sizes for securities in which it makes a market, as well as execute orders, change quotes, and send out trade confirmations.

Why it Matters:

Quoted prices are necessary to inform investors about the prices of securities. The information contained in a quoted price is sometimes limited; for example, it may not disclose which market makers are bidding for or offering the security, whether there are limit orders on the security, or the size of potential trades at a particular price. In other words, quoted prices do not give the viewer access to the "order book" showing who has an interest in a security and at what price. But quoted prices do give traders and investors a basic idea of how a security is doing.

http://www.investinganswers.com/financial-dictionary/stock-market/quoted-price-5864

Offline munna99185

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Re: Quoted Price
« Reply #1 on: February 25, 2014, 02:24:08 PM »
Quoted price is the most recent price at which an investment (or any other type of asset) has been traded. The quoted price of investments such as stocks, bonds, commodities and derivatives changes constantly throughout the day as events occur that affect the financial markets and the perceived value of various investments. The quoted price represents the most recent bid and asks prices that buyers and sellers were able to agree on. The quoted prices of stocks are displayed on an electronic ticker tape, which shows up-to-the-minute information on trading price and trading volume throughout the trading day. The tape shows the stock (indicated by a three- or four-letter stock symbol), the number of shares traded, the price they traded at (in decimal form), whether the quoted price represents an increase or decrease from the last quoted price and the amount of the change in price. [Source: http://www.investopedia.com]

Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University