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Market price |
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Market priceThe price at which a market clears.Market priceThe price for a security. As far as stocks are concerned, there is not one market price but two:the bid price - the price at which you can sell shares which you ownthe offer price - the price at which you can buy sharesOn the London markets, prices for most shares are quoted by market makers who act as 'wholesalers', and are flashed up on brokers' SEAQ screens. The quote will also show the maximum order size at which the market- maker is prepared to deal at the prices quoted (known as 'normal market size'). The difference between the bid and offer price is called the spread and is the source of the market maker's profit.Prices for the largest companies are quoted on the Stock Exchange Electronic Trading Service (SETS) which matches sellers and buyers directly and does without the need for market makers. The spread on these companies is normally smaller.Market prices are quoted on the financial pages of most newspapers and on many websites, sometimes live, sometimes delayed by 20 minutes. In the newspapers, the price quoted is neither the bid nor the offer price, but the mid price at the time the market closed on the previous day. So if a share closed at 105-109, the mid price would be 107. On some websites the price quoted is the 'last trade' price -that is the price at which the last automated trade on the previous day was made.Market priceThe last reported price at which a security was traded on an exchange.Market price Similar MatchesIntermarket Surveillance Information System (ISIS)Intermarket Surveillance Information System (ISIS)A database that distributes information from all the major stock exchanges in the United States. Liquid marketLiquid marketA market allowing the buying or selling of large quantities of an asset at any time and at low transactions costs. Checking the marketChecking the marketSearching for bid and offer prices from market makers to find the best deal. Capital market line (CML)Capital market line (CML)The line defined by every combination of the risk-free asset and the market portfolio. The line represents the risk premium you earn for taking on extra risk. Defined by the capital asset pricing model. Cash marketsCash marketsAlso called spot markets, these are markets that involve the immediate delivery of a security or instrument. Related: Derivative markets. Further SuggestionsBreadth of the marketStock market Sellers market Fair market price Efficient market Securities markets Efficient markets theory(EMT) Overall market price coverage Secondary market Marketing board Foreign exchange market Bulldog market Midmarket Common market fair market value Market Market on Close (MOC) order Inside market Marketable Title National Market System (NMS) Tight market Market rate Cost of carry market Relationship marketing Financial market |
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