The bid price or ask price is bigger and its reasons Introduction: A price in which the market maker (dealer) offers to buy a stock is termed as a bid price . This bid price helps to determine the price of the stockwhere an investor can sell stocks in the market. A particular price where the market maker (dealer) offers to sell a stock in the market is termed as an ask price . This price also determines the purchase price of a stock.

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Chapter 8.3, Problem 8.3BCQ

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To discuss: The bid price or ask price is bigger and its reasons

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A price in which the market maker (dealer) offers to buy a stock is termed as a bid price. This bid price helps to determine the price of the stockwhere an investor can sell stocks in the market.

A particular price where the market maker (dealer) offers to sell a stock in the market is termed as an ask price. This price also determines the purchase price of a stock.

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