price transparency

Definition

The degree to which information is available regarding the trading of stocks. For example, if a stock index had high price transparency, that would allow the public to see the range of bid and ask prices for each stock. Low price transparency would limit public access to some or all of these details. For example, the Nasdaq Level II service has high price transparency, showing all bid and ask amounts, whereas the NYSE only shows the highest bid and lowest ask amounts.

Use price transparency in a sentence

There was some price transparency and it was all available for us to have a look at and see what was happening.

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You should try and make sure that you have good price transparency so everyone knows you are legit and not hiding anything.

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When Robert was looking to make some investments in the corn company, he hesitated because there was very little price transparency.

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price to tangible book value (PTBV) Price Value of a Basis Point