Ask price
Encyclopedia
Ask price, also called offer price, offer, asking price, or simply ask, is the price
a seller
states she or he will accept for a good
.
The seller may qualify the stated asking price as firm or negotiable. Firm means the seller is saying he or she won't change the price. Negotiable means the seller is inviting the potential buyer to attempt to convince the seller to lower the price.
In bid and ask
, the term ask price is used in contrast to the term bid price
. The difference between the bid price and the ask price is called the spread.
, the ask price is the lowest price a seller of a stock is willing to accept for a share of that given stock. For over-the-counter stocks, the asking price is the best quoted price at which a market maker
is willing to sell a stock.
s, the asking price is the net asset value plus any sales charges. It is also called asked price or offering price or ask.
s the ask price is the reservation price
. Some auctions may not have such a price. This price is the minimum that the seller will agree to for the object being sold.
Price
-Definition:In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services.In modern economies, prices are generally expressed in units of some form of currency...
a seller
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
states she or he will accept for a good
Good (economics and accounting)
In economics, a good is something that is intended to satisfy some wants or needs of a consumer and thus has economic utility. It is normally used in the plural form—goods—to denote tangible commodities such as products and materials....
.
The seller may qualify the stated asking price as firm or negotiable. Firm means the seller is saying he or she won't change the price. Negotiable means the seller is inviting the potential buyer to attempt to convince the seller to lower the price.
In bid and ask
Bid and ask
Price mechanism is an economic term that refers to the buyers and sellers who negotiate prices of goods or services depending on demand and supply. A price mechanism or market-based mechanism refers to a wide variety of ways to match up buyers and sellers through price rationing.An example of a...
, the term ask price is used in contrast to the term bid price
Bid price
A bid price is the highest price that a buyer is willing to pay for a good. It is usually referred to simply as the "bid."In bid and ask, the bid price stands in contrast to the ask price or "offer", and the difference between the two is called the bid/ask spread.An unsolicited bid or purchase...
. The difference between the bid price and the ask price is called the spread.
Stock exchange
In the context of stock trading on a stock exchangeStock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
, the ask price is the lowest price a seller of a stock is willing to accept for a share of that given stock. For over-the-counter stocks, the asking price is the best quoted price at which a market maker
Market maker
A market maker is a company, or an individual, that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn. From a market microstructure theory standpoint, market makers are net sellers of an option to be...
is willing to sell a stock.
Mutual funds
For mutual fundMutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
s, the asking price is the net asset value plus any sales charges. It is also called asked price or offering price or ask.
Commodities
The ask price is the lowest price a seller of a commodity is willing to accept for that commodity.Auctions
In auctionAuction
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder...
s the ask price is the reservation price
Reservation price
In microeconomics, the reservation price is the highest price a buyer is willing to pay for goods or a service; or; the smallest price at which a seller is willing to sell a good or service...
. Some auctions may not have such a price. This price is the minimum that the seller will agree to for the object being sold.