The difference between the price of a newly issued stock and its actual price with an adjustment for the effect of the offering's announcement.
Related information about effective spread:
- Bid-Ask Spreads: Effective versus Quoted - Financial Education ...
Jun 3, 2008 ... The effective spread better captures the cost of a round-trip order by including ... Effective spread is defined as twice the difference between the ...
- Measuring Trade Execution Costs in Financial Markets
can be of trade prices to midpoints at or before the time of the trade, as in effective spread measures, or to midpoints after the trade, as in realized spread ...
- Effective spread - Financial Dictionary - The Free Dictionary
The gross underwriting spread adjusted for the impact that a common stock offering's announcement has on the firm's share price.
- 1
table above and in Equation (1) is the effective spread, i.e., the spread faced by the dollar-weighted average investor who actually trades at the observed prices.
- Commitment to Execution Quality - Trading with Fidelity
Average effective spread: $0.0135 ... This value is doubled, so the effective spread on your order is $0.02. The lower the effective spread value, the better.
- How Effective Are Effective Spreads? An Evaluation of Trade Side ...
One of the key metrics for market quality is the effective spread, defined as ... computation of effective spread requires two crucial pieces of information, the trade ...
- Effective Spread - Definition of Effective Spread - QFINANCE
Definition of effective spread from QFinance - The Ultimate Financial Resource. What is effective spread? Definitions and meanings of effective spread.
- effective spread - Invest Definition
effective spread definition: The spread actually paid by investors whose orders are routed to a particular market....