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BidThe price a potential buyer is willing to pay for a security. Sometimes also used in the context of takeovers where one corporation is bidding for (trying to buy) another corporation. In trading, we have the bid-ask spread which is the difference between what buyers are willing to pay and what sellers are asking for in terms of price.Bid Similar MatchesCabinet bidCabinet bidA cabinet bid, which is a facility enabling holders of deep out-of-the-money options to close their positions at a nominal £1 per contract. Asked to bid or offerAsked to bid or offerUsed in context of general equities. Usually a seller (buyer) looking to aggressively sell (buy) stock, usually asking for a capital commitment from an investment bank. Bid/offer spreadBid/offer spreadThe difference between the selling price and the purchase price for investments.When you ask a broker what price the shares of a company are trading at in the market, he will quote two prices: the bid price is the price at which you can sell your shares, and the offer price is the price at which you can buy them. The first is always lower than the second, and the difference between them is the spread.Market makers, who act like wholesalers in the stock market, make their profit from the spread - buying shares at the bid price and selling them at the offer price Bid priceBid 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 offer spreadBid offer spreadThe difference between the selling price and the purchase price for investments.When you ask a broker what price the shares of a company are trading at in the market, he will quote two prices: the bid price is the price at which you can sell your shares, and the offer price is the price at which you can buy them. The first is always lower than the second, and the difference between them is the spread.Market makers, who act like wholesalers in the stock market, make their profit from the spread - buying shares at the bid price and selling them at the offer price Further SuggestionsLondon Interbank Bid Rate (LIBID)Bid/ask spread Competitive bidding Bid to cover ratio Bidding up Competitive bidders Bid away Bid wanted Hit the bid Bidding buyer Bid asked spread Noncompetitive bid Stalking horse bid Two tier bid Bidding through the market bid price |
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