Ask Price

Definition: The ask or offer price is the lowest price that a seller is willing to accept for a stock or other security. The ask size will specify the number of shares the seller is willing to sell at that ask price.  This is also sometimes called “the ask” or “ask price” or “offer price.”

Example: When you get a quote on a stock  or security you will often see the Last Trade Price and the current Bid/Ask prices.  For example, Google might have a Last of $700.75 and be Bid $700.50 and Ask $701.00.  A quote screen might also show the bid/ask size and show $700.50 x 1,000 and $701.00 x 500.  This would mean that you could immediately buy 500 shares at $701 or sell 1,000 shares at $700.50. The ask price is the complement of the bid price. The bid is the highest price a buyer is willing to pay for a stock or security.  The ask will always be higher than the bid.

Visit these other Glossary Words that you MUST KNOW in order to understand How The Market Works!

Other Important Glossary Terms you MUST KNOW::
      > Ask Price
      > Bid Price
      > Market Order
      > Limit Order
      > Trailing Stop Order
      > Dividend
      > P/E Ratio
      > ETF
      > Mutual Fund
      > Preferred Stock
      > Fundamental Analysis
      > Technical Analysis
      > Cup and Saucer
      > Double Bottom
      > EPS (earnings per share)
      > GTC Order (Good Til Cancel)

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