Stock prices
'Stock price' refers to the current price that a share of stock is trading for on the market. The price of a stock will go up and down depending on a number of different factors. For example, changes in the economy, as well as changes to the individual company’s operations, can impact the stock price.
What is a bid-ask spread?
'Bid-ask spread' refers to a two-way price quote that shows the current price at which shares are available at a given point in time. The bid price represents the maximum price that a buyer is willing to pay for a share, while the offer (ask) price represents the minimum price that a seller is willing to accept for that share. The offer price is always higher than the bid price.
When using a market order, you’ll typically pay the ask price if you’re buying the stock, and you’ll receive the bid price if you’re selling the stock. When using a limit order, you set the price you’re willing to buy or sell, and it will generally only be filled if the bid or ask rises or falls to that specified price.
Bid-ask spread = offer price - bid price.