Bid Price

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What is a 'Bid Price'

A bid price is the price a buyer is willing to pay for a security. This is one part of the bid with the other being the bid size, which details the amount of shares the investor is willing to purchase at the bid price. The opposite of the bid is the ask price, which is the price a seller is looking to get for his or her shares.

BREAKING DOWN 'Bid Price'

The use of bid and ask is a fundamental part of the market system, as it details the exact amount that you could buy or sell at any point in time. Remember that the current price is not the price for which you can purchase the security, but the price at which the shares last traded hands. If you want to get an idea of the price for which you can buy a security, you need to look at the bid and ask prices because they will often differ from the current price.

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RELATED FAQS
  1. What do the bid and ask prices represent on a stock quote?

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  4. Why are the bid prices of T-bills higher than the ask prices? Aren't bids supposed ...

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