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.