Types of Quotations

What this video covers

• Why an unmodified quote on an inter-dealer quotation system is always a firm quote, and what price and size the market maker must honor
• What backing away means, why refusing to honor a firm quote violates just and equitable principles of trade, and how the exam frames this trap
• When a market maker uses a subject quotation, and why the word "subject" must appear at the time of publication for the flexibility to be valid
• The workout quotation as a price range for illiquid or infrequently traded securities, and why time to find a counterparty makes it non-binding
• The nominal or informational quotation, and the Securities and Exchange Commission (SEC) quotation-identification requirement that mandates clear labeling
• How bid wanted (BW) and offer wanted (OW) function for price discovery in municipal bond and thinly traded markets with no firm price set
• The single binding versus non-binding distinction that separates firm quotes from every other quotation type on the exam