The bid price is the price that an investor is willing to pay for the security. For example, if an investor wanted to sell a stock, he or she would need to determine how much someone is willing to pay for it. This can be done by looking at the bid price. It represents the highest price that someone is willing to pay for the stock.
What is the difference between a bid and a sell?
The highest proposed purchase price is the bid and represents the demand side of the market for a given stock. Each offer to sell similarly includes a quantity offered and a proposed sale price. The lowest proposed selling price is called the ask and represents the supply side of the market for a given stock.
What are bid and ask prices?
Bid and ask prices are the reigning highest buy price and lowest sell price in the market which doesn't mean one must only buy/sell at thise prices.
