Bonafide Quote is a quote entered into the market representing the intention of a firm to execute the order under the condiitions displayed. A bonafide quote is a firm quote for the number of shares of stock or number of bonds displayed.
Bonafide quotes are firm quotes that may be executed under the terms and conditions displayed in market. A dealer may be held to the terms of a bonafide or firm quote. if a dealer entered a fictitious quote it would be a violation as it would not represent the dealer’s intention to trade at those prices. A nominal quote may be given for informational purposes and the dealer may not be held to the prices of nominal quote
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