Quote

Categories: Trading

" ." That's it.

It's also a suggested price given by a broker when you want to buy 1,000 shares of a stock. Or whatever bond has a coupon of 5.5%. Or any other security.

The buyer asks for a quote. The broker gives one that is legally binding, usually. Like, say the broker quotes the buyer, $17.32 for 1,000 shares of GE. If the buyer wants them, the seller is obligated to sell them at that price and volume to the buyer right now. No ifs, ands, or other quotes.

Related or Semi-related Video

Finance: What is a Firm Deal: Commit, Qu...4 Views

00:00

Finance allah shmoop What are a firm deal Ah firm

00:06

commit and a firm quote No a lot of firms

00:11

here is by agra involved in this one No Well

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okay people Yes You knew we were going to go

00:16

there We'll start with firm commit Well the whole notion

00:19

of a firm commit applies on a few fronts Like

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if a lender is lending dough Well usually there is

00:25

a contractual agreement cleverly called a firm commitment letter and

00:31

it derives a firm deal like the deal will follow

00:34

that commitment And that letter specifies the amount of money

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the lender is willing to lend at a given interest

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rate With all the terms you know spelled out for

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given time like this offer is good for thirty days

00:47

or until june first Or until the where wolf grows

00:51

What they crow Don't they Okay howl whatever In an

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ai po when a bank is selling shares on behalf

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of a company issuing them a firm commit gives rise

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to a firm deal And it basically says that the

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bank is responsible for selling any unsold shares That is

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It's called a quote bought deal unquote And the bank

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Either sells those aipo shares to investors or well they

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buy them for their own account In a firm quote

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the commitment involved usually refers to a broker dealers bid

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ask spread in selling those shares like she holds a

01:24

few million shares of amazon in inventory and publishes to

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her constituency that she is firm as a buyer at

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eleven hundred two and twenty and a seller at eleven

01:35

hundred eight and fifty Got it sets one one zero

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two point two zero in a cellar at one one

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zero eight point five oh yeah that's how it would

01:44

look well if anyone matches those numbers then she is

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legally obligated to sell them And just in case someone

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wants to buy a good gillian shares i am or

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than she carries in inventory well there's usually a limit

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number attached to her offer for like i stand firm

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on one hundred thousand at this price like a hundred

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thousand shares and not a hundred thousand won something like

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that anyway so firm think obligated confirmed contracted for legally

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binding and sometimes yeah that'll give you cramps Just try 00:02:17.1 --> [endTime] prunes

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