quotation

noun quo·ta·tion \ kwō-ˈtā-shən also kō- \
Updated on: 14 Nov 2017

Definition of quotation

1 : something that is quoted; especially : a passage referred to, repeated, or adduced
2 a : the act or process of quoting
b (1) : the naming or publishing of current bids and offers or prices of securities or commodities
(2) : the bids, offers, or prices so named or published; especially : the highest bid and lowest offer for a particular security in a given market at a given time

Examples of quotation in a Sentence

  1. He gathered quotations from the trial transcript to prove his point.

  2. a well-known quotation attributed to Abraham Lincoln

  3. a book of humorous quotations

  4. She relied heavily on quotation in her essays, which made them less original.

Recent Examples of quotation from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'quotation.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of quotation

1607

quotation Synonyms


Financial Definition of QUOTATION

quotation

What It Is

Quotation is the long form of quote, which refers to stock quote. A stock quote is an estimate of price or a price at which one party is willing to buy or sell a certain number of shares of stock from the other. A quotation consists of a bid price and an ask price.

How It Works

For example, a quotation for Company XYZ stock includes the real-time bid price, ask price, quote size, price of the last trade, size of the last trade, the high price for the day, and the low price for the day. Quotations are available from the exchanges online, via the media, or in financial publications.

A level I quote is the real-time bid and ask price for a security that trades on the Nasdaq or over-the-counter markets. They do not disclose which market makers are bidding for or offering the security, whether there are limit orders on the security, or the size of potential trades at a particular price.

A level II quote is a set of real-time trading information for a security that trades on the Nasdaq or over-the-counter markets. It includes the real-time bid price, ask price, quote size, price of the last trade, size of the last trade, the high price for the day, the low price for the day, and a ranked list of the real-time best bid and ask prices from participating market makers.

A level III quote includes all of the above but also allows a market maker to change its bids, offers, and order sizes for securities in which it makes a market, as well as execute orders, change quotes, and send out trade confirmations.

Why It Matters

Quotations are necessary to inform investors about the prices of securities. The information contained in a quotation is sometimes limited; for example, it may not disclose which market makers are bidding for or offering the security, whether there are limit orders on the security, or the size of potential trades at a particular price. In other words, quotations do not give the viewer access to the "order book" showing who has an interest in a security and at what price. But quotations do give traders and investors a basic idea of how a security is doing.


QUOTATION Defined for English Language Learners

quotation

noun

Definition of quotation for English Language Learners

  • : something that a person says or writes that is repeated or used by someone else in another piece of writing or a speech

  • : the act of using quotations in a piece of writing or a speech

  • : a written statement of how much money a particular job will cost to do


QUOTATION Defined for Kids

quotation

noun quo·ta·tion \ kwō-ˈtā-shən \

Definition of quotation for Students

: material (as a sentence or passage from a book) that is repeated exactly by someone else


Seen and Heard

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