Define: Spread

Spread
Spread
Quick Summary of Spread

Spread is a term commonly used in finance and investment banking to describe the difference between two prices. In the banking industry, it represents the gap between the interest rate a bank offers to attract deposits and the rate at which it lends money. In the securities market, it signifies the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to sell. Spread can also refer to the practice of simultaneously buying and selling options or futures contracts to capitalize on price discrepancies. In investment banking, spread refers to the difference between the price an underwriter pays the issuer of a security and the price paid by the public during the initial offering. This spread serves as compensation for the underwriter’s services and includes various fees and discounts such as the manager’s fee, underwriter’s discount, and selling-group concession or discount.

Full Definition Of Spread

Spread is the term used to describe the difference between two prices or rates. It is commonly used in banking, securities, and investment banking. In banking, spread refers to the difference between the interest rate paid on deposits and the rate charged on loans. For example, if a bank pays 2% interest on deposits and charges 5% interest on loans, the spread is 3%. In securities, spread refers to the difference between the bid price (highest price a buyer is willing to pay) and the asked price (lowest price a seller is willing to sell) of a security. For example, if the bid price for a stock is $50 and the asked price is $52, the spread is $2. Spread can also refer to the profit made from buying and selling options or futures contracts on the same security. In investment banking, spread refers to the difference between the price paid by the underwriter and the price paid by the public in the initial offering of a security. This spread includes the manager’s fee, the underwriter’s discount, and the selling-group concession or discount. Overall, spread is a term that encompasses the difference between two prices or rates in various financial contexts.

Spread FAQ'S

Spread refers to the act of disseminating or distributing information, ideas, or materials to a wider audience, typically through various means such as social media, publications, or word of mouth.

Yes, spreading false information can potentially lead to legal consequences. If the false information harms someone’s reputation, causes financial loss, or incites panic, you may be held liable for defamation, fraud, or other related offenses.

No, spreading copyrighted material without permission from the copyright holder is generally considered copyright infringement. This includes sharing music, movies, books, or any other copyrighted content without proper authorization.

Yes, spreading someone’s private information without their consent, such as personal addresses, phone numbers, or intimate photos, can lead to legal action. This invasion of privacy may result in civil claims for damages or even criminal charges.

Yes, hate speech and discriminatory content are often subject to legal restrictions. Depending on the jurisdiction, such speech may be considered a criminal offense, leading to penalties or even imprisonment.

Yes, intentionally spreading viruses, malware, or other harmful software can result in legal consequences. This act is typically considered a violation of computer crime laws and may lead to criminal charges.

No, spreading confidential or classified information without proper authorization is generally illegal. This includes leaking sensitive government documents, trade secrets, or any other information protected by law.

Yes, spreading false rumors or gossip about someone that harms their reputation can lead to a defamation lawsuit. If the statements are proven to be false and have caused damage, you may be held liable for defamation.

Yes, the distribution of adult content is subject to various legal restrictions, such as age verification requirements and compliance with obscenity laws. Failure to adhere to these regulations can result in legal consequences.

Yes, spreading someone else’s intellectual property, such as copyrighted works, trademarks, or patents, without proper authorization can lead to legal action. This includes sharing or reproducing protected materials without permission.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 17th April 2024.

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