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Market Fundamentals·Economics & Strategy
bid-ask spread

bid-ask spread

/bɪd æsk sprɛd/

📈 Market Fundamentals

the difference between the highest price a buyer will pay and the lowest price a seller will accept

bid-ask spread in a sentence

“The bid-ask spread on the thinly traded stock was $0.50, making it expensive to trade.”

Origin of bid-ask spread

Old English beodan to offer + Old Norse asca to ask + Old French espandre to spread

Related Words

dividend

a portion of a company's earnings distributed to shareholders, usually in cash

yield

the income generated by an investment expressed as a percentage of its current price

short selling

borrowing and selling shares you do not own, betting the price will fall so you can buy them back cheaper

margin

borrowed money used to purchase securities, amplifying both gains and losses

portfolio

a collection of financial investments held by an individual or institution

index fund

a passively managed fund that tracks a market index such as the S&P 500

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