"Bid" Price

"Bid" Price

The term "bid" refers to the highest price a buyer will pay to buy a specified number of shares of a stock at any given time.  The term "ask" refers to the lowest price at which a seller will sell the stock.

The bid price will almost always be lower than the ask or “offer,” price.  The difference between the bid price and the ask price is called the "spread."

We have provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.