Market versus Quote (MVQ)
What It Is:
Market versus quote (MVQ) refers to the most recent market price at which a security was either bought or sold with regard to the latest bid and ask prices.
How It Works/Example:
MVQ is the difference between the last market price at which a security was bought or sold and the most recent bid and ask prices.
For example, suppose Stock ABC last traded at $50 per share and the current bid/ask prices are $49.50 and $50.50, respectively. The MVQ for Stock ABC is $0.50 because the difference between the market price and both the bid and ask prices is $0.50.
Why It Matters:
A security's MVQ indicates the amount that a broker or market maker takes as a commission for trading a security on a buyer or seller's behalf. Furthermore, a smaller MVQ value suggests that a security is more liquid than one with a higher MVQ.
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Cached on May 24, 2012, 10:30 am