Meaning of 'Bid And Asked'
Bid and asked term is used in stock trading. In the share market, there are two parties. One is buyer of stock and other is seller of stock. Bid is that price which any buyer wants to pay for buying any company's shares or stock. Ask or Asked is the that price which any seller wants to get from buyer for selling his owned company's shares or stock. If bid and asked prices will be same, deal between buyer and seller will be OK. In simple form, we can explain bid and asked as the offer and acceptance for buying and selling of any stock on any particular price.
For example
For example, Tom wants to buy stock of A company at $ 105 per share. This is the bid price which Tom investor want to invest for a share. But Marry who is the seller of A company wants to sell at $ 110. This is her asked price. Now, after discussing with each other both are agree to deal with the price of $ 107 per share.
Importance of Bid and Asked in Stock Market
If you get the update information of stock market, you will get this in bid and ask price form. More difference between both will decrease the speed of transactions in stock market. Both's existence is very necessary in the stock market. If seller agrees bid price of buyer, it will be helpful to save some money in the investment. If buyer increases his bid price, it will increase the profit potentiality of seller. Bid and asked generate two powers of economic law. One is demand and other is supply. Bid spread represents the increase of demand. Asked spread increases the limitation of supply. More asked spread increases the earning capacity of sellers of stock.
Bid and asked term is used in stock trading. In the share market, there are two parties. One is buyer of stock and other is seller of stock. Bid is that price which any buyer wants to pay for buying any company's shares or stock. Ask or Asked is the that price which any seller wants to get from buyer for selling his owned company's shares or stock. If bid and asked prices will be same, deal between buyer and seller will be OK. In simple form, we can explain bid and asked as the offer and acceptance for buying and selling of any stock on any particular price.
For example
For example, Tom wants to buy stock of A company at $ 105 per share. This is the bid price which Tom investor want to invest for a share. But Marry who is the seller of A company wants to sell at $ 110. This is her asked price. Now, after discussing with each other both are agree to deal with the price of $ 107 per share.
Importance of Bid and Asked in Stock Market
If you get the update information of stock market, you will get this in bid and ask price form. More difference between both will decrease the speed of transactions in stock market. Both's existence is very necessary in the stock market. If seller agrees bid price of buyer, it will be helpful to save some money in the investment. If buyer increases his bid price, it will increase the profit potentiality of seller. Bid and asked generate two powers of economic law. One is demand and other is supply. Bid spread represents the increase of demand. Asked spread increases the limitation of supply. More asked spread increases the earning capacity of sellers of stock.
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