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What happens to price when a shortage exists?
Consumers bid up the 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 bid an ask price in commodities?
"Ask" is the price sellers are asking for their commodity. "Bid" is the price buyers are willing to pay.
Difference between the bid price and offer price?
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.
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 happens to price when a shortage exists?
Consumers bid up the price.
Can you offer a lower price in Ebay?
You can place a bid for a lower price, but it will not be accepted. There is a minimum price set by the seller, and a reserve price sometimes set. If you bid below the minimum, it is not allowed. If you win an auction below the reserve price, the seller can refuse it. If you underbid the current high bid, it will be rejected. Rarely, the reserve price is below the opening sale price, so try it and see what happens.
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.
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 a Bid price and ask price?
I want to sell my car - my asking price is $3,000 but your BID price is only $2,500
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 firm fixed price bid?
This means that the price bid for the contract will (if the winning bid) be the actual price paid by the buyer and cannot change (even if it results in a loss to the seller).
What is the bid an ask price in commodities?
"Ask" is the price sellers are asking for their commodity. "Bid" is the price buyers are willing to pay.
Difference between the bid price and offer price?
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.
What is locational arbitrage?
Locational arbitrage is possible when a bank's buying price (bid price) is higher than another bank's selling price (ask price) for the same currency.
What happens when two people want the same piece of land?
The one will out-bid the other and buy it.
What is crossing the bid ask spread?
Selling at a price equal to or lower than the bid price or buying at a price equal to or higher than the ask price.
