Investments & Financial Planning

What is the Bid and Ask price in Nasdaq trading ?

The bid price is the highest price offered by a dealer to purchase a given security. The ask price is the lowest price at which a dealer is willing to sell the security. The dealer adds securities to his or hers inventory by purchasing them at the bid price and sells securities from inventory at the ask price. A profit will occur from the difference between the bid and ask price.

Need Professional Help?

If you need help with "Investments & Financial Planning" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.