Bid and ask

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Bid-Ask Spread

On an exchange, the difference between the highest price a buyer of a security or other asset is willing to pay and the lowest price a seller is willing to offer. Generally speaking, the more liquid an asset is, the lower the bid-ask spread is. As a result, currency, which is considered the most liquid asset, has an extremely low bid-ask spread.

Bid and ask.

Bid and ask is better known as a quotation or quote.

Bid is the price a market maker or broker offers to pay for a security, and ask is the price at which a market maker or dealer offers to sell. The difference between the two prices is called the spread.

References in periodicals archive ?
"SSE Green enables organisations to report zero emissions for Greenhouse Gas (GHG) using the market-based method for their Scope 2 purchased electricity.
One of the drawbacks of the market-based method, beyond the difficulty of obtaining reliable and complete data from the market, is the way in which the value is adjusted in relation to similar market transactions.
But of even greater importance to the laboratory community, Section 216 of PAMA provides a new, market-based method for updating individual test fees on the CLFS.
At the prodding of the MEC and other business groups, lawmakers crafted HB799 to counter the effects of a Mississippi Supreme Court ruling last summer that upheld the authority of the state Department of Revenue to use an alternative market-based method in determining a multistate company's state income taxes.
A market-based method for choosing the locations of lottery terminals and setting retailers' commissions would ensure that the machines were placed where they were expected to generate the most revenue.
Touchstone Books, an imprint of publishing company Simon & Schuster Inc, has announced that it is to work with Media Predict, a new website that uses a market-based method to evaluate and discover media content.
Similarly, how would California benefit from an understanding of how a service provider sources receipts for Minnesota apportionment purposes when California uses a cost-of-performance methodology while Minnesota employs a market-based method?
In order to appreciate the differences between observed and calculated value, the following section sets forth the definition of "Fair Market Value"; presents a hierarchy of valuation methods for observing or calculating that value for IP assets; and presents in greater detail a new market-based method, for valuing a hypothetical technology we shall call Gizmo.
They also discuss the implications of different rates of return on the PRA balances and, more generally, the issue of risk, including a market-based method of guaranteeing the real principal of all PRA deposits.
It explores tensions between traditional, indigenous and local conceptions of human/nature relationships, on the one hand, and new conceptions underlying modern market-based methods for creating 'green' futures, on the other.
"This approach brings innovative and market-based methods together to help people become independent by providing them with sustainable livelihood opportunities," the UNCR said in statement.
This approach brings innovative and market-based methods together to help people become independent by providing them with sustainable livelihoods opportunities, said a press release.The 18-month project worth USD1.2 million will benefit 2,000 households.