Definition of Bid Price

What is the "Bid Price"?

The bid price is the highest amount that someone is willing to pay for a stock at that moment.

If you visit and type in a stock, you will be given a "bid price" and an "ask price".

stock brokers - exchange - bid priceThe ask price is always higher than the bid price.

The bid price, as mentioned, is the most that someone is willing to pay for a stock at that moment.

The ask price, on the other hand, is the lowest price that a seller of a stock is willing to accept at that moment.

If you are looking to sell a stock and enter a market sell order, then that order will try to match your sell order with the best available bid at that time.

Example: You bought 5,000 shares of MSFT two years ago and are now looking to sell.

You need the money in order to purchase a vacation property. Time is of the essence, and you need to exit the position immediately.

You log into your online stock broker and notice that the best bid price is $22.05. You enter a market order to sell, and your order is filled within seconds at $22.05.

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