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Ask price, also called offer price, offer, asking price, or simply ask, is the price a seller states they will accept. The seller may qualify the stated asking price as firm or negotiable. Firm means the seller is implying that the price is fixed and will not change. In bid and ask, the term ask price is used in contrast to the term
bid price A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for some goods. It is usually referred to simply as the "bid". In bid and ask, the bid price stands in contrast to the ask price or "offer", and the difference betwee ...
. The difference between the bid price and the ask price is called the spread.


Stock exchange

In the context of stock trading on a
stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for the ...
, the ask price is the lowest price a seller of a stock is willing to accept for a share of that given stock. For over-the-counter stocks, the asking price is the best quoted price at which a
market maker A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the '' bid–ask spread'', or ''turn.'' The benefit to the firm is that i ...
is willing to sell a stock.


Mutual funds

For mutual funds, the asking price is the net asset value plus any sales charges. It is also called asked price or offering price or ask.


Commodities

The ask price is the lowest price a seller of a
commodity In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. The price of a co ...
is willing to accept for that commodity.


Auctions

In
auction An auction is usually a process of buying and selling goods or services by offering them up for bids, taking bids, and then selling the item to the highest bidder or buying the item from the lowest bidder. Some exceptions to this definition ex ...
s the ask price is the reservation price. Some auctions may not have such a price. This price is the minimum that the seller will agree to for the object being sold.


See also

*
Bid price A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for some goods. It is usually referred to simply as the "bid". In bid and ask, the bid price stands in contrast to the ask price or "offer", and the difference betwee ...
* Bid–offer spread


References


External links


Securities and Exchange Commission definition of "ask price"

Ask price and offer price introduction
Financial economics Financial markets {{Finance-stub