If a stock is worth .60 what does it mean when is says "ask" is $3.00?

Answer 1

There are bid and ask prices for bonds. Bid is what someone is willing to pay to BUY it. Ask is what someone is willing to pay. On stocks that do not trade that often, the bid/ask spread can be huge.

So the "price" of 0.60 is misleading. If you own it, then you can sell it for $0.60. If you want to buy it, it will cost you $4.

Answer 2

BID - how much is someone willing to pay for the stock right now..ASK - how much someone is willing to sell the stock for. ..There is a HUGE problem here though... The spread (ASK price - BID price) is HUGE. The spread for liquid (actively traded) securities could be just a penny, but it does get wider with illiquid stocks or small cap (low market value) stocks. However, this is way to much. In other words, if some broker calls you right now and offers to sell you this stock at $3.00 you will only be able to sell it to someone else at 0.69 (or wait untill thre are enough buyers out there who are willing to bid up the price from 0.60 to 3.00). Stay away from this stock - do yourself a favor...

Answer 3

That means someone will sell it to you at that price. If the asking price is $3.00 and the stock is trading at .60 cents, then something is really wrong. The asking price is typically a small percentage off the bid price.

Answer 4

people who own the stock want ten dollar for the stock to sell you,bid is the price you want to pay.actual price is .60 cents in your case.it is a too big of a spread.

Answer 5

make sure you wern't looking at the b/a 'after hours' when most of the MM's pull their positions

and any stock is only valued at whereever the current 'real' bid is

Answer 6

You seem to have got things wrong dude. Try again