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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
The lowest price someone is willing to sell a stock for right now.
Why It Matters
The ask is what you'll actually pay to buy right now. If Apple's ask is $179.52, that's the price of immediate ownership. The difference between bid and ask is the spread - essentially a hidden transaction cost. For highly traded stocks, the spread is pennies; for thinly traded stocks, it can be dollars.
Key Points
- When you buy with a market order, you pay the ask price (or close to it)
- The ask is sometimes called the 'offer' price
- In fast-moving markets, the ask can change between when you click 'buy' and when your order fills
Related Terms
Common Questions
The lowest price someone is willing to sell a stock for right now. The ask is what you'll actually pay to buy right now. If Apple's ask is $179.
The ask is what you'll actually pay to buy right now. If Apple's ask is $179.52, that's the price of immediate ownership. The difference between bid and ask is the spread - essentially a hidden transaction cost. For highly traded stocks, the spread is pennies; for thinly traded stocks, it can be dollars.
When you buy with a market order, you pay the ask price (or close to it)
The ask is sometimes called the 'offer' price
In fast-moving markets, the ask can change between when you click 'buy' and when your order fills