Traders wanting to buy a security make ______ prices; traders wanting to sell make ______ prices.
When a trader want to buy a security the trader makes a bid price. | ||||||||||
On the other hand, when a trader wants to sell a security the trader | ||||||||||
makes an ask price. | ||||||||||
When a security is listed on an electronic exchange like the Nasdaq or the NYSE (New york stock exchange), | ||||||||||
the highest bid price gets quoted as the bid price and the lowest ask price gets quoted as the | ||||||||||
ask price. | ||||||||||
Traders wanting to buy a security make bid prices; traders wanting to sell make ask prices. |
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