Bid/Offer Spread Financial Glossary

What is it? The offer price is what you pay if you want to buy an investment and the bid price is what you get when you want to sell. The difference between the offer price and the bid price is known as the spread. The size of the spread depends on the sales, management and marketing costs of the investment, and the amount of profit margin built in by the market maker.

Finance Term Definition Added By: Carter

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