Quick Finance Tip - Bid-Ask Spread / Spread

Spread refers to the "gap" or "difference" between the "bid" and the "ask" price. Ask refers to the lowest price point a investor is willing to sell their share. Bid refers to how much an investor is willing to buy it. Ask Price is then higher than the Bid Price. Therefore, Bid-Ask Spread is the difference. For instance, if the ask is at $20, the bid is at $19, therefore, the spread is $1, or 5% being $1/$20. Only way this sells is if the Ask meets the Bid, or the bid meets the ask.