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16 April, 18:11

Explain the difference between a bid price and an asked price and explain why the prices are different

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  1. 16 April, 18:15
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    The bid price is what buyers are willing to pay for it. The ask price is what sellers are willing to take for it. If you are selling a stock, you are going to get the bid price, if you are buying a stock you are going to get the ask price.
  2. 16 April, 18:33
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    The bid price refers to the highest price a buyer will pay for a security. The ask price refers to the lowest price a seller will accept for a security. The difference between these two prices is known as the spread; the smaller the spread, the greater the liquidity of the given security.
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