Buy Quote
A buy quote is the price of the security. It's basically another term for the "ask price," i.e. what the person selling the share would take for it.
The other end of the equation is the sell quote. Everything in between these figures is the spread.
Because the buy quote is so similar to the ask price, we'll look at that a bit more. The Securities and Exchange Commission’s Regulation NMS requires that this information be provided by brokers to their clients, and that brokers guarantee this price. The information is included in the National Best Bid and Offer (NBBO), and is designed to let the investor know what the best buy price and the best sell price are at all times during that day.
However, the system is not always up to date. If it's not, an investor may attempt to buy a share, but the price might change by the time the order is processed.
Picture Ebay auctions. Even if you're sitting there bidding live rather than letting the system bid for you, the price can rise fast, and there's a small delay in announcing the winner and final price. The NBBO system can have that same flaw. But this system may be the best one for small-time investors...those who don't have access to all the latest technology or bidding systems.
Related or Semi-related Video
Finance: What are Limit Order, Sell Limi...7 Views
Finance a la shmoop what is a limit order? you want to sell a thousand shares
of Colonel electric it was demoted after they cut their dividend the shares have [Scissors cuts dividend in half]
been trading wildly between $15 and $25 a share you don't want to feel like a
moron for having sold them at fifteen bucks when six weeks later they kissed
25 with tongue so what do you do well you put in a limit order that is you put
a limit of a minimum price of 25 bucks a share for Colonel Electric such that [Pile of stocks appear]
those shares will simply sit in your account unsold maybe forever until
somebody out in the wild blue yonder of Stockland is willing to pay twenty five [Woman standing at a colonel electric stand]
dollars or more for the shares where you have a minimum price limit of 25 bucks a
share in your order so here's to hoping they sell and don't get further demoted [Man carries stock into car]
Sargent Electric is just a place you don't want to go
Up Next
What is an All or None Limit Order? An all or none limit order says the investor wants their order filled entirely or not at all. An investor may r...