Can you explain what level 2 quotes are and how they differ from level 1 quotes?

Level 2 quotes provide more detailed information about a stock's trading activity compared to level 1 quotes. Level 2 quotes show the best bid and ask prices from multiple market makers, allowing traders to see more depth in the market and make more informed decisions. In contrast, level 1 quotes only display the best bid and ask prices from a single market maker.