Hi,
I just started my entry into investing world and was going through articles about investing. I understood the notion that bid indicates the current highest offer price from any buyer (limit order) and ask indicates the lowest selling price from any seller
If the above assumption is correct, then what does it mean if a given stock's bid = 0.0. Does this mean no buyers. Strangely, the ask for the same stock is higher than the market price. Does this mean there are sellers without buyers? Whom are they selling to?
Ex: Company A
market = 0.39; bid = 0.0; ask = 0.50;
If I buy A's stock, will I be able to sell quickly. The spread seems to be large. Is this a candidate for short term investment? (of course assuming that the company is doing good)
Appreciate your response and clarification on this.
Thanks
-TP
2007-04-24
20:46:04
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6 answers
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asked by
TP
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