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Definition: The ask price is the lowest price you can pay for the stock. This is because it's the lowest price any seller is offering their shares of stock for. Although the ask price might be $14, you might pay slightly higher if you put in a large order.
TeenAnalyst Advice: It's important to understand that the price you pay for a stock may not be what it's quoted at. Always look at what the company's ask price is when you're buying shares of stock.Some companies are very illiquid and have large spreads between the bid and ask prices. For example, a stock might be quoted at $13.50 but the ask price might actually be $14.00. If you place an order, you'll pay $14.00. That means you'll lose 3.5% of your investment immediately! |
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