Bid vs. Ask

The bid and ask prices are the two most important prices when it comes to buying and selling stocks 💰

Bid price = the highest price that a buyer is willing to pay for a stock 📈

Ask price = the lowest price that a seller is willing to accept for a stock 📉

Let’s say Bezos is trying to sell you Amazon stock, but you only want spend $100 but Bezos wants $115 🤔

$100 = the bid price and $115 is the asking price 📝

The spread = difference between the bid and ask prices 💱

With our Jeff Bezos example, the spread is $15 😮

The spread can be affected by many different factors, including supply and demand, market conditions, and the overall economy 📊

Sometimes people just see a stock as more worthy than you! 🤷

It’s important to keep an eye on the bid and ask prices and the spread when making investing decisions 🧐

Now you understand the basics of the bid and ask prices and the spread! 💡