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Bid Price - Definition
Below, you'll find a definition of this investing term...

Definition: This is the highest price that someone is willing to pay to buy shares of stock.  This also means that this is the highest price you can expect to get for your shares of stock when selling them.  It is always lower than the ask price.

TeenAnalyst Advice: Always look at the bid price before you sell your shares.  If the stock you're holding isn't very liquid (meaning that not many people buy and sell that stock), the bid price might be considerably lower than what the stock is quoted at.  So if you're holding a $15 stock, you might only get $14.50 for it when you sell it because of the bid price.

 

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

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