Trading
Bid Price
The highest price a buyer is currently willing to pay for a share. Selling 'at market' fills at the bid price.
Example
If you place a market sell order on a stock quoted at a $49.98 bid / $50.02 ask, your shares fill near $49.98 — not the higher ask price.
Common Misconception
Confusing bid and ask is common. It helps to remember it from the market maker's perspective: they bid to buy from you (lower) and ask to sell to you (higher).
Why It Matters
The bid-ask spread is a real transaction cost that widens on low-volume stocks, which is worth checking before placing a market order on a thinly traded name.