Quotation in the stock market refers to the latest price at which a security, such as a share or bond, is traded on an exchange. It represents the most recent bid and ask prices and helps investors understand the current market value of a particular asset. A quotation serves as a real-time indicator of demand and supply dynamics for that security.

In simple terms, a quotation displays two key values — the bid price (the highest price a buyer is willing to pay) and the ask price (the lowest price a seller is willing to accept). The difference between these two prices is known as the spread. A narrow spread often indicates high liquidity and active trading, while a wide spread may suggest lower market participation or volatility.

Market quotations are provided by stock exchanges and updated continuously during trading hours. These quotations help traders and investors make informed decisions based on the most accurate and timely data available. For instance, when a company’s stock shows an upward quotation trend, it may indicate positive market sentiment or strong financial performance.

It’s important to note that quotations are not fixed; they fluctuate throughout the day as orders are placed and executed. Investors should always cross-check quotations using reliable exchange data before executing trades. Additionally, understanding quotations can assist in evaluating market trends, identifying entry and exit points, and managing investment risks effectively.

In summary, a stock market quotation is a fundamental tool for analyzing price movements, gauging investor sentiment, and making informed investment decisions — ensuring transparency and efficiency in the trading ecosystem.