A bid is the amount that a buyer claims to be willing to buy for a stock, security, or asset.

Sometimes a buyer might make a bid to an individual who is not looking to sell. This is called an unsolicited bid.  In the practice of “bid and ask,” the bid price is different from the ask price. The difference between the ask and the bid price is referred to as the bid/ask spread. When referring to the stock exchange, the bid price is the maximum amount that a buyer is willing to pay for a share of stock.

Have something to add? Let us know.

Leave a Comment

Your email address will not be published. Required fields are marked *