Investing term

What is Ask?

The lowest price a seller is currently willing to accept.

The ask is the lowest price any seller is currently willing to accept for a security. Pair it with the bid (the highest a buyer will pay) and the small gap between them is the spread. When you place a market buy order, you generally pay the ask — so for thinly traded securities a wide ask can quietly raise your real cost.

For example

If the bid is $19.98 and the ask is $20.02, buying "at market" fills you at $20.02 — the seller's price, not the midpoint.

Ask is taught hands-on in Stage 5 — How Markets Work Globally.

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Related terms

BidThe highest price a buyer is currently willing to pay.Circuit breakerAn automatic trading halt that fires when the broad market falls past a threshold.ExchangeWhere buyers and sellers of the same stock meet to trade.IPOInitial Public Offering — the first time a company sells shares to the public.
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