Bid

Bid
1. An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to be purchased.

2. The price at which a market maker is willing to buy a security. The market maker will also display an ask price, or the amount and price at which it is willing to sell.

This is the opposite of the ask, which stipulates the price a seller is willing to accept for a security and the quantity of the security to be sold at that price.

1. An example of a bid in the market would be $23.53 x 1,000, which means that an investor is willing to purchase 1,000 shares at the price of $23.53. If a seller in the market is willing to sell that amount for that price, then the transaction is completed.

2. Market makers are vital to the efficiency and liquidity of the marketplace. By quoting both bid and ask prices on the market, they always allow investors to buy or sell a security if they need to.


Investment dictionary. . 2012.

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  • bid — 1 / bid/ vb bid, bid·ding vt: to offer (a price) for payment or acceptance vi: to make a bid: state what one will pay or take in payment a contractor bidding for a job bid·der n bid 2 …   Law dictionary

  • bid — bid1 [bid] vt. BADE, bidden, bidding; for vt. 3, 6, 8 & for vi., the pt. & pp. are always bid, bade or bid, bid [ME bidden, to ask, plead, pray < OE biddan < IE base * bheidh , to urge, compel; meaning and form merged with ME beden, to… …   English World dictionary

  • Bid — (b[i^]d), v. t. [imp. {Bade} (b[a^]d), {Bid}, (Obs.) {Bad}; p. p. {Bidden}, {Bid}; p. pr. & vb. n. {Bidding}.] [OE. bidden, prop to ask, beg, AS. biddan; akin to OS. biddian, Icel. bi[eth]ja, OHG. bittan, G. bitten, to pray, ask, request, and E.… …   The Collaborative International Dictionary of English

  • Bid — (b[i^]d), v. t. [imp. {Bade} (b[a^]d), {Bid}, (Obs.) {Bad}; p. p. {Bidden}, {Bid}; p. pr. & vb. n. {Bidding}.] [OE. bidden, prop to ask, beg, AS. biddan; akin to OS. biddian, Icel. bi[eth]ja, OHG. bittan, G. bitten, to pray, ask, request, and E.… …   The Collaborative International Dictionary of English

  • Bid — (b[i^]d), v. t. [imp. {Bade} (b[a^]d), {Bid}, (Obs.) {Bad}; p. p. {Bidden}, {Bid}; p. pr. & vb. n. {Bidding}.] [OE. bidden, prop to ask, beg, AS. biddan; akin to OS. biddian, Icel. bi[eth]ja, OHG. bittan, G. bitten, to pray, ask, request, and E.… …   The Collaborative International Dictionary of English

  • Bid'a — Bidʿa ‏ بدعة‎ bid a, DMG bidʿa bedeutet „Neuerung“, „Ketzerei“, „ketzerische Lehre“ in der islamischen Theologie und Jurisprudenz und steht somit im Widerspruch zur Sunna. Grundsätzlich ist jede Neuerung zunächst verwerflich, wenn sie nicht im… …   Deutsch Wikipedia

  • Bidʿa — ‏ بدعة‎ bid a, DMG bidʿa bedeutet „Neuerung“ in der islamischen Theologie und Jurisprudenz und steht somit im Widerspruch zur Sunna. Grundsätzlich ist jede Neuerung zunächst verwerflich, wenn sie nicht im Einklang mit dem Koran und der Sunna …   Deutsch Wikipedia

  • bid — Ⅰ. bid [1] ► VERB (bidding; past and past part. bid) 1) offer (a certain price) for something, especially at an auction. 2) (bid for) (of a contractor) tender for (work). 3) (bid for) make an effort to obtain or achiev …   English terms dictionary

  • Bid — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom. {{{image}}}   Sigles d une seule lettre   Sigles de deux lettres > Sigles de trois lettres …   Wikipédia en Français

  • Bid'a — Bid ah Religion religions abrahamiques : judaïsme · christianisme · islam C …   Wikipédia en Français

  • bid — [n1] offering of money or services advance, amount, declaration, feeler, hit, invitation, offer, pass, price, proffer, proposal, proposition, request, submission, suggestion, sum, summons, tender; concepts 67,330 bid [n2] endeavor attempt, crack …   New thesaurus

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