Bid price is the term used for the highest buy price available for a stock. All prospective buyers of a stock have to provide a price at which they are willing to buy a stock. Bid price is the highest of these prices.
The ask price (sell price) is slightly less than the bid price (buy price). For liquid stocks, the difference between the ask price and bid price tends to be lower.
Related Terms: Ask Price – Market Order – Limit Order
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