Encyclopedia of Investment Terminology

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Bid Price

The price at which a stock or bond can be sold at when placing an order at the market. The opposite of Bid Price is Asked Price. Every stock has a bid and asked price when it is being traded, which represents what the stock can be bought and sold at. The difference between the bid and asked price is caled the spread, which is the profit that the market maker makes or specialist makes on their transactions.

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