Ask price

The ask price, also known as the offer price, is the lowest price a seller is willing to receive for a certain security.[1][2]

The ask price is contrasted with the bid price, which is the maximum amount that someone is willing to buy a security for. The ask is higher than the bid, and the difference is called the "bid-ask spread". This spread is one of the costs of transacting on stock exchanges, separate from trading commissions.[3]

When buying shares using a market order on a stock exchange, you are expecting to pay the current ask.

References

  1. ↑ Investopedia, Ask, viewed January 5, 2019
  2. ↑ TMX Money, Stock Market Terms, Ask, viewed January 5, 2019
  3. ↑ Canadian Couch Potato, The Hidden Cost of Bid-Ask Spreads, viewed January 5, 2019
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