Bid price


 

Home
Site Map
Add Term
Search
About Us
Contributors

Bid price

This 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 price

The 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 Matches

Settlement price

Settlement price

A 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.


Pricey

Pricey

Term used for an unrealistically low bid price or unrealistically high offer price.


Call price

Call price

The 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 price

Supply price

The price at which a given quantity is supplied; the supply curve viewed from the perspective of price as a function of quantity.


Mid price

Mid price

The 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 Suggestions

Exchange Delivery Settlement Price
Basic 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


 
All rights Reserved. Do not copy without permission.