Investing

Quote

What is an offer?

A quote is the latest price at which an investment (or any other type of asset) is traded. Quotes for investments such as stocks, bonds, commodities and derivatives are constantly changing throughout the day as events occur that affect the financial markets and the perceived value of various investments. Quotes represent the latest buying and selling prices that buyers and sellers can agree on.

key takeaways

  • Quoted prices for investments or assets are the most recent bid and ask prices agreed upon by buyers and sellers.
  • The electronic stock quote strip shows the stock’s quote, along with the ticker symbol, the number of shares traded, the price at which it was traded, signs of up or down from the last quote, and the amount of price change.
  • The bid price represents the highest price a potential buyer is willing to pay for a security, commodity or currency.
  • The asking price, also known as the offer price, represents the price the seller will accept for an asset or security.
  • The bid-ask spread is the difference between the bid and ask prices; the bid-ask spread for liquid assets that can be easily bought and sold is small.

Learn about quotes

Stock quotes are displayed on electronic quotations showing the latest trading price and volume information. Most major exchanges trade from 9:30am to 4pm EST.

The ticker tape shows the stock (represented by a three- or four-letter ticker symbol or ticker symbol—for example, AAPL for Apple Inc. or TGT for Target Corporation), the number of shares traded, the traded price (in decimal form), and the quoted price is Whether the last quote was increased or decreased, and the magnitude of the price change.

Some of the most famous exchanges in the world are the New York Stock Exchange (NYSE), Nasdaq, London Stock Exchange (LSE) and Tokyo Stock Exchange (TSE).

Quote and Bid Price

Quotes represent the latest agreement between buyers and sellers, or bid and ask prices.

bid price

A bid price is an offer made by an investor, trader or dealer to buy a security, commodity or currency. A bid price is the highest price a potential buyer is willing to pay to acquire a security or asset. Quote services and ticker symbols typically show the highest bid price available for a security.

selling price

The bid price is the opposite of the ask price, which is the amount a seller accepts for an asset or security. The ask price (also commonly referred to as the ask price) is always higher than the bid price.

The difference between the bid and ask prices is the spread. The spread indicates the liquidity of an asset or how easy it is to sell. The spreads on particularly liquid stocks are tight, usually a few cents.

When a purchase is filled at the bid price, both the bid and ask prices may increase for the next transaction, depending on demand. The current price of a security is the last price paid for it and is usually different from the bid and ask prices.

special attention items

For individuals who trade their own portfolios, quotes are usually displayed in rectangles in easy-to-find locations on their online trading platforms. If a security is in high demand and is traded, the bid and ask prices are constantly changing. Quotes may not rise or fall significantly during the trading day if the security is not well covered and there is no significant demand.

Quotes and Dealers

A number of stakeholders follow the stock’s quoted price, including company management, investor relations teams, major investors and retail investors. Traders, in particular, are constantly watching and predicting quotes for securities in order to place bets for their clients or their own accounts. When traders work for financial institutions, they usually trade in the company’s currency and credit. Alternatively, traders can work independently, in which case they will not receive the same salaries and bonuses as larger entities, but will be able to keep all profits.

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