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Spread

(1) The gap between bid and ask prices of a stock or other security. (2) The simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months. Also known as a straddle. (3) Difference between the price at which an underwriter buys an issue from a firm and the price at which the underwriter sells it to the public. (4) The price an issuer pays above a benchmark fixed-income yield to borrow money.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Spread

The difference between two prices. For example, if one sells an asset for a higher price than one bought it, this profit is called a spread. It may also refer to the difference between the highest bid and the lowest offer for a security. See also: Bid-ask spread, Arbitrage, Spread option.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

spread

1. A position taken in two or more options or futures contracts to profit through a change in the relative price relationships. Purchasing an option to expire in October and selling an option on the same asset expiring three months earlier is one example of a spread.
2. The difference in price between two futures contracts that are identical except for delivery date.
3. The difference between the bid and ask prices for a particular security. A large spread often indicates inactive trading of the security. Also called markup. See also effective spread, gross spread, narrow the spread.
4. The difference in yields between two fixed-income securities. See also basis point.
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.

Spread.

In the most general sense, a spread is the difference between two similar measures. In the stock market, for example, the spread is the difference between the highest price bid and the lowest price asked.

With fixed-income securities, such as bonds, the spread is the difference between the yields on securities having the same investment grade but different maturity dates. For example, if the yield on a long-term Treasury bond is 6%, and the yield on a Treasury bill is 4%, the spread is 2%.

The spread may also be the difference in yields on securities that have the same maturity date but are of different investment quality. For example, there is a 3% spread between a high-yield bond paying 9% and a Treasury bond paying 6% that both come due on the same date.

The term also refers to the price difference between two different derivatives of the same class.

For instance, there is typically a spread between the price of the October wheat futures contract and the January wheat futures contract. Part of that spread is known as the cost of carry. However, the spread widens and narrows, caused by changes in the market -- in this case the wheat market.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

spread

the difference between the bid (buy) and offer (sell) price of a FINANCIAL SECURITY, FOREIGN CURRENCY or COMMODITY quoted by a MARKET MAKER or dealer. See BID PRICE.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

spread

see BID PRICE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

spread

(1) The difference between the asking price and an offer. For example, if the seller was asking $1.5 million but the offer was only $1.2 million, the spread would be $300,000. (2) The difference between the cost of money and the earning rates.

Example: A mortgage banker is able to borrow money at 7 percent interest because of its excellent credit and high net worth. It then loans that money out on moderately risky ventures at 15 percent interest. The spread is 8 percent.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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The global fruit spreads market is segmented on the basis of the product and fruit type.
NUTELLA "hazelnut spread" has four times more sugar than nuts, a report has revealed.
| Jimjams Hazelnut Chocolate Spread, PS2.59 for 350g, Tesco
The growing interest in nut-based spreads is also a trend noted by Euromonitor.
Consumers indicated a preference for spreads made with natural ingredients and without the use of additives or unnecessary sugar or salt.
"We think consumers are looking for a lot of different things when they're shopping the spreads aisle - nutrition, convenience and value are all high on their list - but we think flavor trumps everything," concludes Zalben.
* Figure 12: US - Sweet Spreads: Retail market segmentation by volume ((000) tonnes) - 2011
* Figure 13: Brazil - Sweet Spreads: Retail market segmentation by value (m BRL) (2007 - 2011)
Finspreads want as many potential traders to understand that spread betting does not have to be confusing and difficult.
Further, Lebanon's spreads narrowed by 22bps in the first two months of 2010 compared to a narrowing of 11 bps for emerging markets spreads.
There is a negative relationship between economic activity and the high-yield spread. This can be seen in the relationship between the high-yield spread (defined here as the spread between the yield of the Merrill Lynch High Yield Master II Index and the Merrill Lynch AAA corporate bond index) and GDP growth or the output gap.