Trading & MarketsQuestion 98 of 125
The National Best Bid and Offer (NBBO) represents:
a.The average of all quotes for the day
b.The highest bid and lowest offer available across all market centers
c.Only quotes from one exchange
d.The opening auction price
Explanation
The NBBO consolidates quotes across all market centers to show the highest available bid and the lowest available offer at a given moment. Firms handling customer orders must seek to execute at prices consistent with the NBBO as part of their best execution obligations.
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