bid
bid definition - finance
- The purchase price of a stock, futures contract, or other investment. The term is used by market makers and other traders who are prepared to purchase an investment. In contrast, ask is the price of a stock or other investment that a market maker or trader is willing to sell an investment for. See also bid-ask spread.
- In the context of a merger agreement or attempted merger, bid indicates a proposed price.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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