National Best Bid and Offer - NBBO
- National Best Bid and Offer - NBBO
- A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
NBBO is the bid and ask the average person will see. Day traders usually use Level 2 market maker screens to see ALL the bids and offers for a particular stock.
The NBBO is updated throughout the day to show the highest and lowest offers for a security in all exchanges and market makers.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
National best bid and offer — (NBBO) is a term used in United States Securities and Exchange Commission regulations. Brokers are required to execute customer trades at the best available ask price when buying securities, and the best available bid price when selling… … Wikipedia
European Best Bid And Offer - EBBO — The European equivalent of the National Best Bid and Offer (NBBO). The EBBO refers to the current best prices available for selling or buying a trading instrument such as a stock. On any exchange, a series of price levels appear for both the buy… … Investment dictionary
Best Bid — The highest quoted bid for a particular trading instrument among all those offered by competing market makers. The best bid is effectively the highest price that an investor is willing to pay for an asset. A bid is an offer made by a trader,… … Investment dictionary
Sub-Pennying — A practice where brokers, dealers or high frequency traders jump to the front of the line in the National Best Bid and Offer (NBBO), which is the highest posted bid and the lower posted offer for a trading instrument, by making a price… … Investment dictionary
International Securities Exchange — Unreferenced|date=July 2007Infobox Company company name = International Securities Exchange company key people = Gary Katz, CEO company type = Exchange foundation = May 26, 2000 location = New York products = Options, Stock, Alternative Markets,… … Wikipedia
Consolidated Tape Association — The Consolidated Tape Association (CTA) oversees the dissemination of real time trade and quote information (market data) in New York Stock Exchange (NYSE) and American Stock Exchange (AMEX) listed securities (stocks and bonds).[1] It is… … Wikipedia
Buy Quote — The best available price to buy a security at any given time throughout the trading session. Brokers are required to provide customers the best available prices, or the National Best Bid and Offer (NBBO). Simply put, the buy quote is the number… … Investment dictionary