Bid price


 

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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

Opening price

Opening price

The range of prices at which the first bids and offers are made or the first transactions are completed on an exchange.


Adjusted exercise price

Adjusted exercise price

Term used in options on Ginnie Mae (Government National Mortgage Association) contracts. The final exercise price of the option accounts for the coupon rates carried on Ginnie Mae mortgages. For example, if the standard GNMA mortgage has an 9% yield, the price of GNMA pools with 13% mortgages in them is altered so that the investor receives the same yield.


Arms length price

Arms length price

The price at which a willing buyer and a willing unrelated seller would freely agree to transact or a trade between related parties that is conducted as if they were unrelated, so that there is no conflict of interest in the transaction.


Conversion parity price

Conversion parity price

Related: Market conversion price


Administered price

Administered price

A price for a good or service that is set and maintained by government, usually requiring accompanying restrictions on trade if the administered price differs from the world price.


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