An ask priceAn ask price is the price a prospective seller wants from th... More is the priceWhat are value stocks? A value company is a company that app... More a prospective seller wants from the buyer when selling an . It is often called the offer priceWhat is price? The price is the measure of the value of good... More, or simply the ask.
The ask or offer price usually states the amount of asset on sale, which could be the number of , or the desired value of a .
The ask price is not the same as the current price, which is the price the security was sold for the last time it was traded. An ask price could be lower or higher than the current price, depending on the seller’s perceived value of it in current marketWhat are value stocks? A value company is a company that app... More conditions.
The ask in a spread
The opposite of the ask price is the (the price offered by the prospective buyer) – the difference between the two is the bid/ask , or more commonly just the spreadWhat are trading spreads? In online trading, spread is the d... More.
Ask prices in trading
In trading, the ask price is the lowest price the seller is willing to accept for the asset they are offering for sale and will be displayed as such on the quoteIn trading, quote is a combination of a bid and an ask pric... More services on a trading platform. Conversely, the bid priceA bid price is the price a prospective buyer is willing to p... More shown will be highest a buyer is willing to pay for their purchase.
For traders dealing in stocks, the ask price is the best-quoted price at which the seller is willing to sell. Traders selling sharesWhat are value stocks? A value company is a company that app... More of mutual funds the ask price is the net asset value plus selling fees. In trading, the ask is the lowest price the commodity seller is willing to sell that commodity for.
Ask prices in a bidding war
Sometimes an or traderWhat is a trader? A trader is a person who buys and sells... More may make an unsolicited bid for something that is not actually for sale. This is most commonly seen in company takeovers when an investorAn investor is someone who spends capital with the expectat... More acquires enough shares to put them in a strong enough position to buy the whole company or a controlling share of it. The owners of the company or another asset may choose to reject the bid, but they may also offer to sell but for a higher ask price.
If more than one unsolicited bid is received, this is known as a bidding war. As bidders bid against each other and push up the bid price (as happens in an auction), the owner of the asset may decide to raise their ask price if they are willing to sell. If the trade is concluded, the owner may receive a far higher ask price than they expected as the winning bidder runs the risk of overpaying, that is paying more than the purchased asset is actually worth and more than the ask price. In such a scenario, the asker makes a huge profit.
See also .
