What is ask price and bid price?
1 answersQuestion asked ( July 27, 2009 , Shopping / Finance )
I’m pursuing my masters in finance degree with focus on marketing as my core specialization. I also have financial markets as a subject and i’m currently struggling to understand what ask price and bid price is?
Answers to : What is ask price and bid price...
Answer
Bid price is the price at which the market players borrow money from the lenders. In other words this is the price the buyer of stock is willing to pay for the share of the particular given stock. For placing the deposit the investor receives this price. For example-In the New York quote 6.50% is the bid price.
Ask Price or the Offer price is the price at which the market player lends money to the borrowers. The price the lender pays for the funds. Normally, you pay more the money borrowed than you receive for lending it.
Example-In the New York quote 6.75% is the ask price.
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