Firm quote
Firm quote
A definite price on a round-lot bid or offer declared by a market maker on a given security and not identified as a nominal quotation (therefore is not negotiable).
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Firm Quote
A bid or ask made by a dealer or market maker that is not up for negotiation. For example, if a dealer offers to sell 5,000 shares of a stock at $10 per share and the quote is firm, then potential buyers need not come back with a counteroffer of $8 per share. They can either take the offer or not. See also: Nominal quote.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
firm quote
A quotation from a market maker to buy and sell a security at firm bid and ask prices. Compare nominal quote.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Firm quote.
A firm quote includes a bid and ask price at which a market maker is willing to trade a specific quantity -- 100 shares of stock, for example.
For example, a firm quote of 42.50/42.70 means that the market maker will pay $42.50 for 100 shares and is willing to sell them for $42.70. But those prices would not apply to trades larger than 100 shares. Then prices would have to be negotiated.
Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.