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

Consumer Price Index

Consumer Price Index

The CPI, as it is called, measures the prices of consumer goods and services and is a measure of the pace of US inflation. The US Department of Labor publishes the CPI every month.


Factor Price Equalization Theorem

Factor Price Equalization Theorem

One of the major theoretical results of the Heckscher-Ohlin Model with at least as many goods as factors, showing that free and frictionless trade will cause FPE between two countries if they have identical, linearly homogeneous technologies and their factor endowments are sufficiently similar to be in the same diversification cone.


Fair price provision

Fair price provision

See:Appraisal rights


Price continuity

Price continuity

Minimal price changes due to transactions.


Issue price

Issue price

The price at which a company's shares are offered to the market for the first time. When they begin to be traded, the market price may be above or below the issue price.


Further Suggestions

Trading price
price to sales ratio
Redemption price
Settlement price
volume weighted average price
Price discrimination
Price undertaking
Stated conversion price
Commodity prices
Flat price risk
Market price of risk
Iso-price curve
Price elastic
GDP implicit price deflator
Import price index
limit price
Sell price
Law of One Price
Aggregate exercise price
Factor-price space
price sensitive information
Ceiling price
Fair market price
Trigger price
Strike price


 
All rights Reserved. Do not copy without permission.