Understanding Equities - Question 78

What is the difference between the “bid” and “asked” prices I see in the stock quotation listings in any local newspaper?

The “bid” is the highest price an investor is willing to pay for the same security. The "asked" is the lowest price at which an investor is willing to sell a security at a specific time.

Bid and asked confuses many investors. To avoid confusion, rephrase them as, respectively, “What can I buy it for?” and “What can I sell it for?”