Stock Exchange: Bid, Ask and Spread
Info by Never Rich Enough | 2012-04-20 at 23:29
On the stock market we differ between the bid-price (bid) and the ask-price (ask). The difference between these two values is called the spread.
Bid
Bid is the market value or price, a buyer is willing to pay for the paper on the market. Therefore, there are buying orders of this price on the market.
Ask
The ask price or ask is the opposite of the bid. The ask is the market value or price, a seller wants to get for the paper on the market. Therefore, there are selling orders of this price on the market.
Bid, Ask and Spread
The ask price is usually higher than the bid price. This means that the selling price in the market is higher than the purchase price. This is because the seller wants to sell his paper more expensive than he has bought it. This difference between bid and ask is called the spread.
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