Investment Glossary
| Term | Definition |
|---|---|
| Ask Price |
The lowest price a seller is willing to accept for a security; the ask price will always be higher than the “bid” price. "Market makers" make money on the difference between the bid price and the ask price. That difference is called the "spread." A market maker is a company, or an individual, that quotes both a buy and a sell price in hopes of making a profit on the spread between bid price and offer price. |
