Bid-Ask Spread

What does it mean?
The amount by which the ask price exceeds the bid.

In Other Words...
For example, if the bid price is $20 and the ask price is $21 then the "bid-ask spread" is $1.

Related Links
Stock Basics Tutorial - If you're new to the stock market and want the basics, this is the tutorial for you!

Getting to Know Stock Exchanges - Find out the answers to all the questions you had about stock exchanges but were afraid to ask!

Related Terms
Ask | Bid | Crossed Market | Inside Quote | Locked Market | Market Maker Spread | Market Versus Quote | Spread

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