The National Directory of Certified Public Accountants

Ask A CPA - Investments & Financial Planning

What Is The Bid And Ask Price In Nasdaq Trading ?

The bid price is the highest price offered by a dealer to purchase a given security. The ask price is the lowest price at which a dealer is willing to sell the security. The dealer adds securities to his or hers inventory by purchasing them at the bid price and sells securities from inventory at the ask price. A profit will occur from the difference between the bid and ask price.

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