Search
Close this search box.

Table of Contents

Quoted Price



Definition

The quoted price refers to the most recent price at which a security or commodity traded, meaning the price that a buyer offers to pay for a security, known as the bid, and the price that a seller is willing to accept for the same security, which is called the ask. It’s the most recent market price that a buyer and seller agreed upon and at which some amount of the asset was transacted. This price is crucial in determining the market value of an asset.

Phonetic

The phonetics of the keyword “Quoted Price” is: /ˈkwoʊ.tɪd praɪs/

Key Takeaways

<ol><li><strong>Definition:</strong> The quoted price is the latest price at which a commodity, security or service, like a stock or a certain business product, is being sold or bought.</li><li><strong>Variability:</strong> Given that it is based on demand and supply, the quoted price can fluctuate over time. It may also differ between markets depending on trading volumes, market competitiveness and other factors.</li><li><strong>Usage:</strong> It is essential in financial analysis and decision-making. For instance, securities traders depend on it to determine the best time to buy or sell, while companies may use it to decide to launch a product or invest in new technologies. </li></ol>

Importance

The business/finance term “Quoted Price” is significant because it acts as an immediate reference point for buyers and sellers in trading transactions. This term refers to the latest price at which a security, commodity, or service is traded. It provides transparency and conveys valuable information about the current market status of a product, aiding both parties in making informed decisions. Its importance also extends into financial analysis to ascertain market trends and for benchmarking in performance evaluations. Any drastic changes in quoted prices can indicate shifts in supply and demand, giving important signals to investors and traders about potential market movements. Hence, a quoted price plays a key role in facilitating and monitoring market transactions while ensuring fair trade practices.

Explanation

Quoted price is a crucial concept used extensively in the financial and business sectors. It primarily serves as the most recent price at which an investment or any other type of asset such as commodities, currency, or stocks, is traded. Essentially, it denotes the latest price point that the buyer is willing to pay and the seller is ready to accept. Operators, investors, and market analysts often use quoted prices as a concrete reference to assess the value of specific assets in the marketplace. It is an invaluable tool for aiding in making informed decisions about buying, selling, or holding particular assets.Besides, quoted price usage extends to showcasing the transparency of the market operations. Since these prices are usually publicly available, they maintain transparency in financial transactions. Furthermore, quoted prices help in providing the reference point for calculating the net asset value (NAV) of mutual funds at the end of the trading session. They are also routinely used during the pricing of some derivatives contracts like options. Overall, quoted prices are fundamental in ensuring fair, competitive and transparent business and financial transactions.

Examples

1. Stock Market: In the stock market, a quoted price refers to the most recent price at which a particular stock was traded. For example, if Google shares are listed at $1500 a share, that is the quoted price.2. Commodities Market: Similarly, in the commodities market, a quoted price could be the current price for a barrel of oil. If the market shows that a barrel of oil is being traded at $70, then that is the quoted price for oil.3. Real Estate: In real estate, the quoted price is the price that a seller states they want for their property. For example, if a homeowner lists their house for $300,000, that is the quoted price for the house.

Frequently Asked Questions(FAQ)

What is a quoted price in finance?

A quoted price refers to the most recent price at which an investment (or any other type of asset) has traded. In other words, it’s the latest price someone paid to own that asset.

How is the quoted price determined?

The quoted price is typically determined by supply and demand in the market at a specific time. Factors such as the financial health of a company, trends in the market, economic conditions, and trading volume can all affect quoted prices.

Is the quoted price the same as the purchase price?

Not necessarily. The quoted price is simply the most recent price for a transaction, while the purchase price is the actual amount you would pay if you decided to buy that asset.

Is the quoted price of a stock the price I will pay when buying stocks?

Although the quoted price of a stock is a good indication of the price you may expect to pay, that is not always the price you will pay. Stock prices fluctuate frequently and the actual price will depend on the exact time of your transaction.

Where can I find the quoted price for a particular asset?

You can find the quoted price of most assets such as stocks, bonds, commodities, and currencies on financial news websites, through a brokerage account, or a trading platform.

What does it mean when there is a large spread between the bid and ask quoted prices?

When there’s a large spread between the bid and ask quoted prices, it often means there is low liquidity or high uncertainty about the asset’s value. The bid price is the highest price that a buyer is willing to pay for an asset, while the ask price is the lowest price at which a seller is willing to sell the same asset.

How often is the quoted price updated?

The quoted price is updated in real-time during trading hours. It constantly changes due to the dynamic nature of markets.

Can the quoted price be negotiated?

For individual investors and traders participating in public markets like the stock market, the quoted price generally cannot be negotiated. It is determined by the interaction of many buyers and sellers in the market. In some private transactions, however, there may be room for negotiation.

Related Finance Terms

Sources for More Information


About Our Editorial Process

At Due, we are dedicated to providing simple money and retirement advice that can make a big impact in your life. Our team closely follows market shifts and deeply understands how to build REAL wealth. All of our articles undergo thorough editing and review by financial experts, ensuring you get reliable and credible money advice.

We partner with leading publications, such as Nasdaq, The Globe and Mail, Entrepreneur, and more, to provide insights on retirement, current markets, and more.

We also host a financial glossary of over 7000 money/investing terms to help you learn more about how to take control of your finances.

View our editorial process

About Our Journalists

Our journalists are not just trusted, certified financial advisers. They are experienced and leading influencers in the financial realm, trusted by millions to provide advice about money. We handpick the best of the best, so you get advice from real experts. Our goal is to educate and inform, NOT to be a ‘stock-picker’ or ‘market-caller.’ 

Why listen to what we have to say?

While Due does not know how to predict the market in the short-term, our team of experts DOES know how you can make smart financial decisions to plan for retirement in the long-term.

View our expert review board

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More