Definition of Bonafide Quote

Bonafide Quote is a quote entered into the market representing the intention of a firm to execute the order under the condiitions displayed. A bonafide quote is a firm quote for the number of shares of stock or number of bonds displayed.

Applying "Bonafide Quote" to Securities Exams:

Bonafide quotes are firm quotes that may be executed under the terms and conditions displayed in market. A dealer may be held to the terms of a bonafide or firm quote. if a dealer entered a fictitious quote it would be a violation as it would not represent the dealer’s intention to trade at those prices. A nominal quote may be given for informational purposes and the dealer may not be held to the prices of nominal quote

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