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Bid yield refers to the return an investor would receive if they were to sell a security at the current bid price, while ask yield refers to the return an investor would receive if they were to buy a security at the current ask price. Bid yield is typically lower than ask yield due to the bid-ask spread, which represents the difference between the buying and selling prices of a security.

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What is the meaning of bid-ask spread in the context of financial markets?

The bid-ask spread in financial markets refers to the difference between the highest price a buyer is willing to pay for a security (bid) and the lowest price a seller is willing to accept (ask). It represents the cost of trading and the liquidity of the market.


What is the Importance of financial markets in financial system?

Financial markets are important because they allow economic growth by offering liquidity, and this liquidity allows markets to get bigger because it allows demand to be expressed very fluidly and without a very large spread (difference between bid and ask prices). Without this liquidity markets would be at a near stand still and economic growth would be very slow as demand would take a very long time to be expressed.


How Importance of financial institutions and markets?

financial institution and financial markets are playing important roles in business inviornent


Is there a difference between Swift and DTCC?

Yes, there is a difference between SWIFT and DTCC. SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a messaging network that facilitates secure financial transactions and communications between banks and financial institutions globally. In contrast, DTCC (Depository Trust & Clearing Corporation) is a post-trade financial services company that provides clearing, settlement, and information services for various financial transactions, primarily in the U.S. markets. While SWIFT focuses on communication, DTCC handles the processing and settlement of trades.


What is the relationship between price and yield in financial markets?

In financial markets, there is an inverse relationship between price and yield. When the price of a financial asset goes up, its yield goes down, and vice versa. This relationship is important for investors to consider when making decisions about buying or selling securities.

Related Questions

What is the difference between the capital markets and the financial markets?

Capital markets buy and sell long term debt while financial markets trade securities that have lower values. Most capital markets can only be accessed by people in the financial sector.


What is the meaning of bid-ask spread in the context of financial markets?

The bid-ask spread in financial markets refers to the difference between the highest price a buyer is willing to pay for a security (bid) and the lowest price a seller is willing to accept (ask). It represents the cost of trading and the liquidity of the market.


What is the difference between a labor market and a factory market?

The primary difference between product markets and factor markets is that factors of production like labor and capital are part of factor markets and product markets are markets for goods.


Why do you think financial markets are required?

They act as a link between renders and borrowers


What is the Importance of financial markets in financial system?

Financial markets are important because they allow economic growth by offering liquidity, and this liquidity allows markets to get bigger because it allows demand to be expressed very fluidly and without a very large spread (difference between bid and ask prices). Without this liquidity markets would be at a near stand still and economic growth would be very slow as demand would take a very long time to be expressed.


What is the difference between old markets and new markets?

I think like that the newer markets are just a wide variety than the other


How Importance of financial institutions and markets?

financial institution and financial markets are playing important roles in business inviornent


In general the financial markets provide a vehicle for?

in general the financial markets provide a vehicle for


Who is the Minister of Financial Markets for Sweden?

Peter Norman is the Minister of Financial Markets for Sweden.


What is the relationship between price and yield in financial markets?

In financial markets, there is an inverse relationship between price and yield. When the price of a financial asset goes up, its yield goes down, and vice versa. This relationship is important for investors to consider when making decisions about buying or selling securities.


Is there a difference between Swift and DTCC?

Yes, there is a difference between SWIFT and DTCC. SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a messaging network that facilitates secure financial transactions and communications between banks and financial institutions globally. In contrast, DTCC (Depository Trust & Clearing Corporation) is a post-trade financial services company that provides clearing, settlement, and information services for various financial transactions, primarily in the U.S. markets. While SWIFT focuses on communication, DTCC handles the processing and settlement of trades.


Difference between primary n secondary markets?

the difference is that primary markets are really fat. the secondary market is a skinny kid that doesnt eat candy