Ask price

From ArticleWorld

Ask price, also typically referred to as offer price, is a price a seller of a good is willing to accept for that particular good. In some cases, the ask price is negotiable in which the buyer can come to terms for a better value.

In many social turns this would be deemed as bartering, and although this is a possibility it may not always be the case. In some cases, the price that is offered is set in stone and under no circumstances will be altered.

Auctions

Ask price, is also used at auctions. This is the lowest possible value that an item can be bid on. This is typically referred to as the base price, or the starting bidding price. In some cases, the actual base price will be lower than the ask price. This is due to the fact that the item up for auction is expected to exceed the ask price.

Stock trading

The term ask price is especially used in stock trading as a contrast to the term of bidding price. The difference value between the ask price and the bidding price is typically referred to as the spread. This is part of the jargon that is unique to stock trading.

Stock exchange

In the context of stock trading on the stock exchange, the ask price is the lowest possible price a seller of a particular stock is willing to accept for each share of that given stock they are selling. Over the course of the day, this particular value may fluctuate in respect to the stock markets.