Bid versus Asking

The first thing to know is the difference between what is called the bidding price and the asking price.

· In the bid price, the rate is what someone out there is willing to pay for the security or stock. This is also the numberat which you could sell your stock if you decided to.

· The asking price, on the other hand, is the amount at which you are willing to sell your security for. In other words, this is the amount at which others would have to pay to get your stock.


Understanding the difference here is important. If you are looking to purchase a stock, you will need to provide an accurate bid for it. If you are looking to sell your stock, you need to know what you could get for it.