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Save Enough - When your children are young is the time to start planning for your children's college and/or universities costs and plan to save one-third to one-half of the...

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Narrowing The Spread


Narrowing the Spread - Narrowing the Spread is the act of reducing the gap between the highest price a buyer of a security or other asset is willing to pay and the lowest price a vendor is willing to offer. The divide narrows when a potential buyer offers a higher price and a potential seller offers a lower price. As the allotment continues to narrow, the security becomes more liquid. It is the spread between the bid and asked prices of a security as a result of bidding and offering by market makers and specialists in a security. The lowest price anyone will sell.

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Lacobel said:

Thanks for this information. Would you consider posting an article that gives more details about the spread between the bid and asked prices and its consequences?

mulberry replica said:

As the allotment continues to narrow, the security becomes more liquid. It is the spread between the bid and asked prices of a security as a result of bidding and offering by market makers and specialists in a security. The lowest price anyone will sell.

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Daily Definition

Definition of the Day Average Down

Average Down - The average down means that the stockholder who is buying additional shares in stock that is already in his/her portfolio, has dropped in price since the he/she purchased of the earlier stock. These stocks are generally owned, a long position, or owed, a short position, by an...

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