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The ''bid price'' is the price at which an investor can sell the securities he/she holds. The ''offer price is the price at which an investor can buy securities.

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Q: Difference between the bid price and offer price?
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What is the difference between bid and tender?

A bid is making a financial offer for something or the amount of money that you will pay for something. A tender is offering a service at a specific price.


What is offer to bid pricing in unit trust?

In the very simplest of terms, the price at which units in a unit trust are bought (the offer price) is greater than the selling price (the bid price) and the difference is a combination of various charges. Hence, the value of the unit trust fund has to increase to cover this difference before the units can be sold without a loss. These prices (on an offer to bid basis) are the normal trading prices and use the maximum buying price. If there are a lot of sellers then the bid price may be reduced by the managers to a lower price to discourage sales (on a bid to offer basis). The lowest bid price is called the cancellation price and is dependent upon the value of the assets of the unit trust. Also, unit trusts do not all have the same difference between buying and selling prices.


What is a price offer called in a bidding?

A price offer in bidding is called a bid price. Someone bidding on something, like at an auction, can bid on the item, which is called the bid price.


What is the difference between bid and offer?

Simply speaking "bid" is what you "bid" for that means when you want to buy and the price you get offered for that purchase; Offer means, when you want to offer i.e. offer to sell? the price someone is willing to pay your offer. if it is the same person, he will pay you less but want more from you. that is why, when you want to exchange currency from the same bank, the "offer" is lower than the "bid" in relation to you! that means you can sell 1 USD for, say 1.20 SGD but if you want to buy USD by giving SGD then you have to give 1,25 SGD yielding a profit of SGD 0.05 to the bank. Clear?


What is the difference between absolute auction and confirmation auction?

In an absolute auction, the highest bid wins the item or real estate, there is no minimum bid requirement. In a confirmation auction the highest bid has to be confirmed/approved by the owner or bank, sometimes also referred to as a reserve price.

Related questions

What is the difference between bid and tender?

A bid is making a financial offer for something or the amount of money that you will pay for something. A tender is offering a service at a specific price.


What is the difference between a tender and bid?

A bid is usually restricted to making a financial offer eg: at an auction you might make a bid of a certain price for a painting. A tender means that you will offer a service/item at a certain price. So it's a lot more complex than just dealing with a price.


What is offer to bid pricing in unit trust?

In the very simplest of terms, the price at which units in a unit trust are bought (the offer price) is greater than the selling price (the bid price) and the difference is a combination of various charges. Hence, the value of the unit trust fund has to increase to cover this difference before the units can be sold without a loss. These prices (on an offer to bid basis) are the normal trading prices and use the maximum buying price. If there are a lot of sellers then the bid price may be reduced by the managers to a lower price to discourage sales (on a bid to offer basis). The lowest bid price is called the cancellation price and is dependent upon the value of the assets of the unit trust. Also, unit trusts do not all have the same difference between buying and selling prices.


What is a bid?

A bid is an attempt, a monetary offer to buy a good at a certain price, or an offer for a price.


What is a price offer called in a bidding?

A price offer in bidding is called a bid price. Someone bidding on something, like at an auction, can bid on the item, which is called the bid price.


What is the difference between bid and offer?

Simply speaking "bid" is what you "bid" for that means when you want to buy and the price you get offered for that purchase; Offer means, when you want to offer i.e. offer to sell? the price someone is willing to pay your offer. if it is the same person, he will pay you less but want more from you. that is why, when you want to exchange currency from the same bank, the "offer" is lower than the "bid" in relation to you! that means you can sell 1 USD for, say 1.20 SGD but if you want to buy USD by giving SGD then you have to give 1,25 SGD yielding a profit of SGD 0.05 to the bank. Clear?


What doas Out Bid mean?

Offer higher price


What is difference between bid security and Bid Bond?

There is no difference. Bid securities can come in different types. A bid bond is just one type of bid security.


What is the difference between the purchase price and the selling price when an investor buys a stock and sells it later at a higher price is this a yield finance related?

buying price is bid, selling price is ask, difference is spread, profit is income or capital gain


Explain why the bid-ask spread is a transaction cost?

The bid-ask spread is the difference between the bid price (the amount of money you get when you sell) and the ask price (the amount of money it costs to buy). Since the ask price is higher than the bid price, it costs you more money to buy the asset than you would receive should you be selling the same asset. This spread is the price (along with a commission) for making the trade.


What is offer-only?

Offer only is quoted when there are many sellers and there are no buyers of a stock. With the absence of a bid or offer spread, the share price is said to be offer only.


What is meaning of bid?

of Bid, of Bid, To make an offer of; to propose. Specifically : To offer to pay ( a certain price, as for a thing put up at auction), or to take (a certain price, as for work to be done under a contract)., To offer in words; to declare, as a wish, a greeting, a threat, or defiance, etc.; as, to bid one welcome; to bid good morning, farewell, etc., To proclaim; to declare publicly; to make known., To order; to direct; to enjoin; to command., To invite; to call in; to request to come., imp. & p. p. of Bid., An offer of a price, especially at auctions; a statement of a sum which one will give for something to be received, or will take for something to be done or furnished; that which is offered., To pray., To make a bid; to state what one will pay or take.