Definition of Ask Price



Also called offer or offer price, it is a price at which a specialist or a market maker would be willing to sell the security he has. For a buyer, it is the highest price that he is willing to pay to buy certain security (called bid price) and for the seller, it is the lowest price that he is willing to sell the security for.

 


The difference between the buyer’s and the seller’s price is called the spread. So, the liquidity of the security depends upon the spread, if the spread is not big the liquidity of that asset would be greater.


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