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2. On an exchange, the last price at which a security, commodity, or derivative traded. This changes throughout a trading day and is recorded on the ticker.
On a stock market, a quotation combines the highest bid to buy and the lowest ask to sell a stock.
For example, if the quotation on DaveCo stock is "20 to 20.07," it means that the highest price that any buyer wants to pay is $20, and the lowest price that any seller wants to take is $20.07.
How that spread is resolved depends on whether the stock is traded on an auction market, such as the New York Stock Exchange (NYSE), or on a dealer market, such as the Nasdaq Stock Market, where the price is negotiated by market makers.