Bid-Ask Spread

Loading the player...

Find out more about this frequently referenced, but often misunderstood, term used to describe the price at which a stock is bought or sold at.


Related Videos

  1. Stop Loss Order Strategy

    A stop loss order is an order placed with a broker to sell a stock immediately if it drops to a certain price. It's a common way for investors to protect themselves from the possibility of a large loss. It is simple and costs nothing. You simply tell your broker you want it.
  2. Floating Stock

    Floating stock is the number of a company’s shares that are available for the public to buy and sell.
  3. Bear Market

    A financial market with declining asset prices fueled by investors’ pessimism, lack of confidence and negative expectations. While bear markets are partly based on actual investment performance, they are also partly based on investor psychology.
  4. Designated Market Maker

    A designated market maker maintains fair and orderly markets for an assigned set of listed firms and improves market liquidity.
  5. Wealth Effect

    The wealth effect is a psychological phenomenon that causes people to spend more as the value of their assets rises. The premise is that when consumers' homes or investment portfolios increase in value, they feel more financially secure, so they increase their spending.
  6. Discounting With The Discount Rate

    The discount rate is the interest rate you need to earn on a given amount of money today to end up with a given amount of money in the future. Let's say you need $1,000 one year from now to go on vacation. We can use the discount rate to determine how much money you would need to have today to have $1,000 in one year.

comments powered by Disqus
Trading Center