• The price at which a seller offers to sell a security.
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| ||Bid asked spread: The difference between the bid and Asked prices.|
| ||Either way market: In the interbank Eurodollar deposit market, an either-way market is one in which the bid and offered rates are identical.In the interbank Eurodollar deposit market, an either-way market is one in which the bid and Asked rates are identical.|
| ||Liquidity: The ease with which investments can be converted to cash at their present market value. Liquidity is significantly affected by the number of buyers and sellers trading a given security and the number of units of the security available for trading.A firm's ability to satisfy its short-term obligations as they come due.A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and Asked prices is narrow and reasonable size can be done at those quotes.A market is liquid when it has a high level of trading activity, allowing buying and selling with minimum price disturbance. Also a market characterized by the ability to buy and sell with relative ease.The ability of a company to convert assets into cash or equivalents without significant loss. Good liquidity enables a company to earn discounts, maintain a good credit rating, meet obligations promptly, and take advantage of market opportunities.Is a characteristic of a market where size and speed of executions are sufficient to absorb many orders with little disturbance in price and in a timely manner.|
| ||Locked market: A market is said to be locked if the bid price equals the Asked price. This can occur, for example, if the market is brokered and brokerage is paid by one side only, the initiator of the transaction.A market is locked if the bid = ask price. This can occur, for example, if the market is brokered and brokerage is paid by one side only, the initiator of the transaction.|
| ||Margin account stocks: A leverageable account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by the stock and, if the value of the stock drops sufficiently, the owner will be Asked to either put in more cash, or sell a portion of the stock. Margin rules are federally regulated, but margin requirements and interest may vary among broker/dealers.|
| ||Related Terms|
| ||Bid asked spread|
Beware of fraud originating in phone messages and faxes: FDIC Consumer News has warned before about crooks who call or e-mail consumers and pretend to be legitimate companies or government agencies wanting people to "verify" or "resubmit" (divulge) confidential information such as bank account or credit card numbers as well as Social Security numbers, passwords and personal identification numbers. Here are variations to know about. More...
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