Bid and Ask

Market Mechanics

The bid is the highest price buyers are currently willing to pay for a stock; the ask is the lowest price sellers are currently willing to accept.

The last price on your screen is simply where the previous trade happened. A market order to buy usually fills near the ask, and a market order to sell usually fills near the bid.

Example

If the bid is $99.98 and the ask is $100.02, a market buy pays about $100.02, while someone selling right away receives about $99.98.

Related Terms

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