Invitation For Bid - IFB
Categories: Banking
It’s finally time. We can’t believe it, but after several years of design and construction, our castle is finally built and furnished and it’s time to build the moat.
But we don’t want just any moat, mind you; we want a moat that is wide enough, deep enough, and long enough to accommodate two wakeboard boats at the same time, and also has a shallow play area off to one side for the kiddos. We want it to blend into the landscape, like all natural moats do (right?), but we also want it to have plenty of underwater lights for nighttime moat fun. Oh yeah—and it also needs to be spannable by our drawbridge and protect us against our mortal enemies and all that.
Anyhoo, now that the dream moat has been designed, it’s time to issue an IFB, or invitation for bid. What this means is that we’re asking for bids on the project from contractors who, uh...do these sorts of things. After a specified time period, we’ll review all the bids and select the best moat builder for our needs. Maybe budget is our primary concern, or maybe we’re looking for a construction firm with a strong modern design, or one that builds green. Regardless, the bids we receive should all have all the information we asked for in the IFB—cost, schedule, design, team members, payment terms, etc.—so we can easily compare and make our choice.
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Finance: What is Spread?48 Views
finance a la shmoop. what is spread? before we start just no. get your mind
out of the gutter. spread refers to the money value between [100 dollar bill]
a bid and ask price under a market maker structure of trading securities. no more
wire hangers, a plastic hanger company is publicly traded on an exchange like
Nasdaq where buyers bid for a price to purchase and sellers ask for a price to [Nasdaq wall shown]
trade. no more wire hangers is bid this moment at 37:23 a share by buyers
willing to buy right now at that price and is being asked at this moment at a
price of 37.31. note the eight cents a shared difference in the share prices.
that dif is the spread between the two prices, and it's worth noting that in [bread is buttered]
extremely volatile stocks, the spread widens. and in boring highly liquid
stocks which don't move much, the spread tightens or is narrower. that is on a
volatile equivalent of no more wire hangers the spread might grow to 20 or
30 cents a share whereas a boring name that pays a big dividend and the stock
never moves much we're thinking AT&T here, [man snores at a desk]
well that spread might be just three or four cents. so why grow? well because a
market maker in a volatile stock doesn't want to be caught losing money on her
inventory. if no more wire hangers suddenly gapped down to 37.10 a share [equation shown]
well it would be likely less than the average of what the market maker paid
for her quote "inventory" unquote in that stock from which he was making a market
in it. each time the shares trade the market makers dip into that spread to [woman dips cracker in butter]
pay their bills and allow them to keep doing business. so that's spread. and it's
not the type that Prince used to sing about. [man on stage]