MARKET QUOTATION Meaning and
Definition
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Market quotation refers to the current price at which a specific financial instrument or security is bought or sold on a financial market. It represents the prevailing market value or price of an asset and is determined by the forces of supply and demand.
A market quotation typically consists of two essential components: the bid price and the ask price. The bid price represents the highest amount a buyer is willing to pay for the asset, while the ask price represents the lowest amount a seller is willing to accept. The difference between these two prices is known as the bid-ask spread.
Market quotations are often provided by financial institutions, brokers, or electronic trading platforms and are updated in real-time or at a specified interval. They are necessary for investors and traders to assess the value of an asset and make informed decisions on buying or selling it.
Market quotations are essential in various financial markets, including stocks, bonds, commodities, currencies, and derivatives. They allow market participants to analyze market trends, determine the liquidity of an asset, and execute trades at fair market prices. Market quotations provide transparency and facilitate efficient price discovery, ensuring that buyers and sellers can effectively execute transactions in a transparent and competitive marketplace.
Common Misspellings for MARKET QUOTATION
- narket quotation
- karket quotation
- jarket quotation
- mzrket quotation
- msrket quotation
- mwrket quotation
- mqrket quotation
- maeket quotation
- madket quotation
- mafket quotation
- matket quotation
- ma5ket quotation
- ma4ket quotation
- marjet quotation
- marmet quotation
- marlet quotation
- maroet quotation
- mariet quotation
- markwt quotation
- markst quotation
Etymology of MARKET QUOTATION
The etymology of the word "market quotation" can be understood by looking at the origins of its constituent words:
1. Market: The word "market" comes from the Latin word "mercatus" which means "trading, buying and selling". It has Old English and Old High German roots as well. The term refers to a place or mechanism where goods or services are bought and sold.
2. Quotation: The word "quotation" is derived from the Latin verb "quotare" which means "to mark or number". It originated in the late 16th century and initially referred to the act of marking or numbering passages in a text or manuscript. Over time, it expanded to include the practice of providing a reference or exact statement from a source.
