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Finance Dictionary and Glossary of Investment Terms
e price a potential buyer is willing to pay for a security. Sometimes also used in the context of takeovers where one corporation is bidding for (trying to buy) another corporation. In trading, we have the bid-ask spread which is the difference between what buyers are willing to pay and what sellers are asking for in terms of price.
1. An offer made by an investor, trader, or dealer to buy a security.2. The price at which a market maker is willing to buy a security.
The price at which someone is willing to buy a security. This is what you get when you sell (as opposed to the asked price, which is what you hoped to get). In over-the-counter trading, securities dealers profit from the spread between bid and asked prices.