| || InvestHub.com's |
Finance Dictionary and Glossary of Investment Terms
The price a seller is willing to accept for a security, also known as the offer price.
is is the quoted ask, or the lowest price an investor will accept to sell a stock. Practically speaking, this is the quoted offer at which an investor can buy shares of stock; also called the offer price.
The lowest price that any investor or dealer has declared that he/she will sell a given security or commodity for. For over-the-counter stocks, the ask is the best quoted price at which a Market Maker is willing to sell a stock. For mutual funds, the ask is the net asset value plus any sales charges. also called asked price or asking price or offering price.
The price at which a holder of a security is willing to sell (as opposed to the bid price, which is what someone is willing to pay). In general, the asked price is the price you pay when you buy, and is higher than the bid. In over-the-counter trading, securities dealers profit from the spread between these two -- so much so that they are often willing to pay discount brokers for ""order flow."" These payments help make it possible for discounters to charge customers rock-bottom, flat-rate commissions per trade. The question is whether discounters are choosing the highest payers rather than dealers who can get the best price on a trade.