The inside market, if we talking the same term, is simply the inside quote. For instance, if ge is 74 3/8bid - N, 74 7/16 - P, 20 x 65, the inside market is 74 3/8 , 2000 bid for, 74 7/16, 6500 offered. YOu can get more detailed by saying that the 74 3/8 bid is on the ny and the 74 7/16 offer is the Pcoast. In this instance the Pcoast has the best offer. Think of it like an ECN having the best offer. They are not the primary market but in this very instance they hvae the best offer, the lowest offer.
Why wouldnt the firm selling stock go to the NYSE with the 7/16offer since it is the most liquid market? It cheaper on the pcoast, a penny or two, multiply by the 6500 and you have $130. Multiply x the numbers of trades a day and you are talking serious, serious savings in floor brokerage expense.
OTC, dell for example, might look like this (also go to yamner univ, nasdaq market and get pictures of l2 screens).
BID ASK
GSCO 92 95 MASH 91 3/4 94
MCLO 92 95 1/2 GSCO 92 95
MASH 91 3/4 94 MLCO 92 95 1/2
Rough example. In this instance, the mm's (only three in our example) are sort by best bids (the left of the two numbers) in the bid column, and by lowest offer. So on a consolidated, level one quote, this stock is 92 bid, 94 offered, 'one-up', 1 x 1, one bid , one offered.
Regards,
STeve@yamner.com |
