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Tip of the Day Spend Less Than You Earn

Spend Less Than You Earn - To spend less than you earn, basically, means to live within your means. In other words, if you don't have the cash to...

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Narrowing The Spread


Narrowing the Spread - Narrowing the Spread is the act of reducing the gap between the highest price a buyer of a security or other asset is willing to pay and the lowest price a vendor is willing to offer. The divide narrows when a potential buyer offers a higher price and a potential seller offers a lower price. As the allotment continues to narrow, the security becomes more liquid. It is the spread between the bid and asked prices of a security as a result of bidding and offering by market makers and specialists in a security. The lowest price anyone will sell.

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Lacobel said:

Thanks for this information. Would you consider posting an article that gives more details about the spread between the bid and asked prices and its consequences?

mulberry replica said:

As the allotment continues to narrow, the security becomes more liquid. It is the spread between the bid and asked prices of a security as a result of bidding and offering by market makers and specialists in a security. The lowest price anyone will sell.

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