Definition
The term National Best Offer pertains to the best available request cost, and it really is a consolidated significance from each one the federal stock exchanges. The National Best Offer could be your best price sellers are eager to accept to get a security like a stockexchange.
Explanation
The National Best Offer, or NBO, is updated during the afternoon. It gives investors with the cheapest ask price for a certain security. This may be the cheapest price a trader, or alternative prospective dealer, is ready to accept payment for some security.
The NBB is just a consensus cost, but since the value has been consolidated from each the main exchanges in addition to market manufacturers. By way of instance, the Consolidated Quotation System (CQS) offers an online service which offers that the NBO advice for stocks traded in the New York Stock Exchange, regional trades from the United States, in addition to problems traded by the Financial Industry Regulatory Authority.
The Securities and Exchange Commission (SEC) requires brokers to make sure clients that this price. Regrettably, enforcement of this SEC’s Regulation NMS is debatable,considering that the amount and pace of trades now make it hard to establish an investor actually obtained the cheapest available request cost in the trade.
