What is Bid-ask spread?
Bid-ask spread: The gap between the buying and selling price.
Where Bid-ask spread fits
Bid-ask spread is part of Market Basics in Stock Market. Stocks are small ownership shares traded on an exchange. Brokers execute orders, indexes track the market, and bull or bear markets describe the mood.
Practical tip
Understand why a price moves before you act on it.
Related terms
- Stock exchange
- A marketplace where shares are bought and sold.
- Bull market
- A period when prices rise and investors feel optimistic.
- Bear market
- A period when prices fall and investors feel pessimistic.
- Market capitalization
- Share price times number of shares: a company's market value.
- Ticker symbol
- A short code that identifies a company's stock on an exchange.
- ETF
- A fund holding many assets that trades like a single stock.
- Share price
- The current cost of buying one share.
- Broker
- Someone who buys and sells securities for clients.
Formulas you will use with it
Test yourself
Which term means: “The gap between the buying and selling price.”?
Market capitalization · Stock exchange · Bid-ask spread
Answer: Bid-ask spread
Learn Bid-ask spread by playing
Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.
Play BizJourney free →