NBBO
Business & Finance abbreviation · Stock Market & Investing
| Stands for | National best bid and offer |
|---|---|
| Categories | Business & Finance |
NBBO stands for National best bid and offer, a stock market & investing abbreviation.
Highest bid price and lowest ask price for a stock across all US exchanges at a given moment, as calculated by the securities information processors. Brokers must generally seek to execute customer orders at prices at least as good as the NBBO.
Example: The fill came in a penny inside the NBBO, a small price improvement for the customer.
Usage notes
Regulation NMS, adopted in 2005, requires trading venues to prevent "trade-throughs" of protected quotes, which underpins the NBBO. Critics note that faster proprietary data feeds can show price changes before the official NBBO updates. Market makers often advertise price improvement relative to the NBBO.
Related abbreviations
More stock market & investing abbreviations
- MMF – Money market fund
- MOC – Market on close
- MPT – Modern portfolio theory
- MSCI – Morgan Stanley Capital International
- NASDAQ – National Association of Securities Dealers Automated Quotations
- NAV – Net asset value
- NDX – Nasdaq-100 Index (ticker symbol)
- NSE – National Stock Exchange of India
- NYMEX – New York Mercantile Exchange
- NYSE – New York Stock Exchange
- OI – Open interest
- OTC – Over-the-counter