Tuesday, February 12, 2008

Ask - Bid

"Ask" is the price at which a prospective seller wants to sell a particular stock. It is generally higher than the current value at which the stock is trading.

"Bid" is the price that a prospective buyer intends to buy a stock. The bid value is generally lower thanm the current price of the trade.

The difference between the two is called as "Spread".

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