Glossary of Municipal Securities Terms


A situation where a specified bid or offer price will be honored for a specified period of time (i.e., “firm”) and will be the price of any transaction executed with the party to whom the price is given during that period. A firm bid or offer may sometimes be subject to a “recall,” either immediately upon notice or after a specified period. Alternatively, the bid or offer might be “firm, fill or kill,” in which case the municipal securities dealer has the right to contact the counterparty and inform it that it must execute a transaction immediately or the bid or offer will be withdrawn. See: QUOTATION. Compare: SUBJECT BID OR OFFER.

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