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The buy and sell price of a stock are referred to as the "bid" and the "ask." The bid is the price that a buyer is willing to pay and the ask is the price that a seller is willing to accept. A narrow spread between the bid and the ask typically means that a stock has good liquidity due to a large volume of shares being traded on an orderly basis. A wide bid/ask spread may occur when shares have low trading volume or when a stock price is under pressure due to an imbalance of buy and sell orders. One method an investor has to prevent overpaying when a stock has a wide trading range is to enter a buy limit order which means the investor instructs his broker to consummate an order only at or below a specified price.

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Q: What does it mean when a share buy and sell price are close together?
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