Quick Definition

In finance, a 'spread' refers to the difference between two prices, rates, or yields. It is commonly used to measure the discrepancy between the buying and selling price of securities or the difference between bid and ask prices.

Examples

• 1The spread between the bid and ask price of a stock on the New York Stock Exchange.
• 2The interest rate spread between a bank's borrowing and lending rates.
• 3The yield spread between a 10-year government bond and a 2-year government bond.
• 4The credit spread between corporate bonds and comparable government bonds.

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