DEFINITION of Quote
The quote is the price at which an asset was last traded or the price at which it can currently be bought or sold.
WHAT IT IS IN ESSENCE
The current price of most assets will be the same as the quote price. And will change throughout the day as the asset is bought and sold on exchanges or over the counter. Each time an asset is traded, its quote price gets updated.
Differing from the quote price (or market price, as it is also known), the bid and ask quotes are the prices at which an asset can be bought and sold.
A quotation is also often known as a quote.
It is a document that a supplier will submit to a potential client that lists the proposed prices for the supplier’s goods or services.
The quotation is normally created based on certain conditions stipulated by the client.
Generally, if the supplier had fixed rates, there would be no need for a quotation. Therefore, a quotation is often required for services but is also commonly used by businesses that sell goods.
HOW TO USE
By sending the quotation to the potential client, the supplier is committing to the proposed price. The quotation, then, is quite different from an estimate, as an estimate is not binding for the supplier.
Because the quotation is binding. It should take into consideration all the costs associated with the job. And be calculated with a markup in order for the business to make a profit.
In the quotation, the supplier will include a breakdown of the factors that have led to a specific price. Such as taxes/VAT, material costs, labor, etc.
Also included is the time frame for when a service will be completed or for when the goods will be delivered.
Quotations may often also include the time period for when it is valid. As well as a clarification of changes in price due to adjustments. Or modifications to the original invoice.