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Bid price |
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Bid priceThis is the quoted bid, or the highest price an investor is willing to pay to buy a security. Practically speaking, this is the available price at which an investor can sell shares of stock. Related: Ask, offer.Bid priceThe price at which a market maker will buy a security - which could be shares, warrants or, in the case of unit trusts, the price at which units will be bought back from their holders.Needless to say, a market maker's bid price is always lower than his 'offer price' which is the price at which he will sell you the security. The difference between the two is known as the 'spread'.Bid prices for shares are quoted on the Stock Exchange's SEAQ system, and displayed live on brokers' computer screens. The prices are only 'firm' for quantities within the 'normal market size' of a stock. So if you try to sell a large quantity of shares in a small AIM stock, you may find that you cannot get the bid price from the market maker because the normal market size quoted for that stock is below the quantity which you want to sell.Similar MatchesSettlement priceSettlement priceA figure determined by the closing range that is used to calculate gains and losses in futures market accounts. Settlement prices are used to determine gains, losses, margin calls, and invoice prices for deliveries. Related: Closing range. PriceyPriceyTerm used for an unrealistically low bid price or unrealistically high offer price. Call priceCall priceThe price at which a bond or preferred stock can be redeemed by the issuer. The call price will usually be greater than the par value to compensate the holder for loss of income and ownership. The difference is known as the call premium. Supply priceSupply priceThe price at which a given quantity is supplied; the supply curve viewed from the perspective of price as a function of quantity. Mid priceMid priceThe average of the bid price and offer price of a security. If, for example, the closing prices of a share are 107p (bid) and 109p (offer), the mid price quoted in the newspaper next day will be 108p. Further SuggestionsExchange Delivery Settlement PriceBasic import price price to book value Transfer price retail price index Price discovery process Demand price Import price index Tough on price Shadow price price high Price immunization Price support Price line Asked price Price undertaking Price momentum Price level Factor price equalization issue price Factor price frontier Price specie flow mechanism Price elastic Earnings price ratio Current prices |
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