You're here:  Home --> Dictionary --> B --> Bid Price

Ask Price
Market Order
Limit Order
Liquidity

Bid Price
Term category: Stocks
In 10 words or less: The highest price someone is willing to pay for a stock at that time.

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.

StockJargon 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 Articles

Buy and Sell Orders
There are a few different types of orders you can place when you want to buy or sell a stock. This article explains them…

Average Daily Volume
Learn about a stock's daily volume and why low-volume stocks are risky…

On the Trading Floor
Ever wondered how a stock exchange works? This article will put you on the floor with the traders…

Related Books

The Five Rules for Successful Stock Investing by Pat Dorsey
Wall Street Journal Guide to Understanding Money and Investments by Kenneth M. Morris
Investing for Dummies by Eric Tyson
Automatic Millionaire by David Bach

# -A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z