I saw this on a quote page .Is this crucial for me if I'm just starting to invest.
2007-03-11 20:47:55 · 4 answers · asked by Agent_Detergent 2 in Business & Finance ➔ Investing
The bid price is what is currently being offered if you were to sell a stock. The ask is what you would have to pay if you were buying it. The reason they're always different is that both these numbers represent real people offering to buy or sell at that price. When they match, that's when a trade occurs.
2007-03-12 00:26:27 · answer #1 · answered by bigfella422 2 · 0⤊ 1⤋
Stocks work like an auction: the bid is what the buyer is willing to pay for the item, and the ask is what seller is asking for the item. If stocks worked like a regular store, there would be no bid price, only the ask price (which is the price tag). I wish we could bid on store items like in some other countries!
2007-03-11 20:57:18 · answer #2 · answered by CharlieC 3 · 0⤊ 0⤋
Bid: The price you quote for buying something.
Ask: The price you want for selling something.
This includes stocks, options etc;.
Usually the Bid price will be lower quote than akd quote. Specialists in Stock Exchanges make their profit from this spread. For selling they charge a few ticks more than buying called the bid/ask spread.
2007-03-12 00:42:43 · answer #3 · answered by Mathew C 5 · 0⤊ 0⤋
bid what the buyer wants to pay
ask what the seller wants to receive
2007-03-12 03:13:07 · answer #4 · answered by chris_sjo 1 · 0⤊ 0⤋