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            • bid-ask spread
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          • Definition(s)
            • Bid-Ask Spread is typically the difference between ask (offer/sell) price and bid (purchase/buy) price of a security. Ask price is the value point at which the seller is ready to sell and bid price is the point at which a buyer is ready to buy. When the two value points match in a marketplace, i.e. when a buyer and a seller agree to the prices being offered by each other, a trade takes place. The Economic Times
          • Example sentence(s)
            • If there is a significant supply or demand imbalance and lower liquidity, the bid-ask spread will expand substantially. - Investopedia by
            • For example, the market maker would quote a bid-ask spread for the stock as $20.40/$20.45, where $20.40 represents the price that the market maker would buy the stock, and $20.45 is the price that the market maker would sell the stock. - the balance by
            • Many traders and analysts scrutinize patterns in bid-ask spreads to understand what prices trigger demand for both sellers and buyers. Other traders and analysts feel that the bid-ask spread itself has little predictive value. - InvestigatingAnswers by
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