The bid price, more usually referred to as the ‘bid,’ is defined as the highest price at which a buyer is willing to purchase a financial instrument such as a stock or an ETF. It entails both the quantity required and the price the investor is willing to pay. The ask price, typically referred to as the ‘ask’, is defined as the minimum amount that a seller is ready to take for the financial instrument. More on bid and ask Suppose you went to an art gallery and you find a really cool painting for your wall. The artist who painted it would first need to know how much someone was prepared to pay for it. He would do this by simply examining the bid price. The bid price reflects the amount above which the buyer is not willing to pay. In other words, the maximum price a buyer is prepared to pay for the stock....