For Narrowing The Spread we have terms and definitions in 3 topics. The topics are Finance, Frauds and Scams and Investing.

Narrowing The Spread (Finance)

Reducing the difference between the bid and ask prices of a security.

Narrowing The Spread (Frauds and Scams)

Closing the difference between a security's bid (highest price anyone is willing to buy) and asked (lowest price anyone is willing to sell) prices. When a stock's bid price, for example, is $8 a share and the asked price is $8 5/8, the spread is 5/8 of a point. If a broker enters a bid to buy at $8 3/8, the bid and ask are now $8 3/8 to $8 5/8, thus the spread has been narrowed to 1/4 of a point.

Narrowing The Spread (Investing)

Closing the difference between a security's bid (highest price anyone is willing to buy) and asked (lowest price anyone is willing to sell) prices. When a stock's bid price, for example, is $8 a share and the asked price is $8 5/8, the spread is 5/8 of a point. If a broker enters a bid to buy at $8 3/8, the bid and ask are now $8 3/8 to $8 5/8, thus the spread has been narrowed to 1/4 of a point.

See Also: Asked Price; Spread

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