Trading
Ask Price
The lowest price a seller is currently willing to accept for a share. Buying 'at market' fills at the ask price.
Example
If a stock shows a bid of $49.98 and an ask of $50.02, a market buy order fills near $50.02 — not the $49.98 you might see quoted as "the price."
Common Misconception
A common mistake is assuming a stock has one single price. In reality, every liquid stock has two prices at once — bid and ask — and the gap between them, the spread, is itself a hidden cost of trading.
Why It Matters
Wide spreads eat into returns on thinly traded stocks and options, which is one reason cost-conscious investors favor high-volume ETFs over illiquid small-cap names for frequent trading.