Bid Price

The price a buyer is willing to pay for a security. This is one part of the bid with the other being the bid size, which details the amount of shares the investor is willing to purchase at the bid price. The opposite of the bid is the ask price, which is the price a seller is looking to get for his or her shares.

The use of bid and ask is a fundamental part of the market system, as it details the exact amount that you could buy or sell at any point in time. Remember that the current price is not the price for which you can purchase the security, but the price at which the shares last traded hands. If you want to get an idea of the price for which you can buy a security, you need to look at the bid and ask prices because they will often differ from the current price.


Investment dictionary. . 2012.

Look at other dictionaries:

  • bid price — bid or bid price The trading price acceptable to a prospective buyer of securities. American Banker Glossary 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 …   Financial and business terms

  • bid price — The price at which market makers or other securities traders will buy securities, as opposed to the offer price at which they will sell. They aim to make a profit on the difference between the bid and offer price, called the spread. This term has …   Law dictionary

  • bid price — bid prices N COUNT The bid price of a particular stock or share is the price that investors are willing to pay for it. [BUSINESS] Speculation centred on a likely bid price of 380p a share …   English dictionary

  • bid price — bid ,price noun count BUSINESS the price at which STOCK is bought on a STOCK EXCHANGE ─ compare OFFER PRICE …   Usage of the words and phrases in modern English

  • Bid price — A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for a good. It is usually referred to simply as the bid. In bid and ask, the bid price stands in contrast to the ask price or offer , and the difference between the… …   Wikipedia

  • bid price — noun (stock market) the price at which a broker is willing to buy a certain security • Topics: ↑stock exchange, ↑stock market, ↑securities market • Hypernyms: ↑price, ↑terms, ↑damage * …   Useful english dictionary

  • 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. The New York Times Financial… …   Financial and business terms

  • bid price — UK / US noun [countable] Word forms bid price : singular bid price plural bid prices business the price at which shares are bought on a stock exchange • See: offer price …   English dictionary

  • bid price — / bɪd praɪs/ noun a price at which investors sell shares or units in a unit trust (NOTE: The opposite, i.e. the buying price, is called the offer price; the difference between the two is the spread.) …   Dictionary of banking and finance

  • bid price — Synonyms and related words: asking price, bargain price, bearish prices, bid, book value, bullish prices, call price, cash price, closing price, controlled price, current price, current quotation, cut price, decline, face value, fixed price,… …   Moby Thesaurus

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