Ask price (also called offer price, offer, selling price, asking price, or simply ask) is the

price A price is the (usually not negative) quantity of payment or compensation expected, required, or given by one party to another in return for goods or services. In some situations, especially when the product is a service rather than a ph ...

a seller states they will accept. The seller may qualify the stated asking price as firm or negotiable. Firm means the seller is implying that the price is fixed and will not change. In bid and ask, the term ask price is used in contrast to the term bid price. The difference between the bid price and the ask price is called the spread.

Stock exchange

In the context of stock trading on a

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...

, the ask price is the lowest price a seller of a stock is willing to accept for a share of that given stock. For over-the-counter stocks, the asking price is the best-quoted price at which a

market maker A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the difference, which is called the ''bid–ask spread'' or ''turn.'' Thi ...

is willing to sell a stock.

Mutual funds

For

mutual fund A mutual fund is an investment fund that pools money from many investors to purchase Security (finance), securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in ...

s, the asking price is the net asset value plus any sales charges. It is also called asked price or offering price or ask.

Commodities

The ask price is the lowest price a seller of a

commodity In economics, a commodity is an economic goods, good, usually a resource, that specifically has full or substantial fungibility: that is, the Market (economics), market treats instances of the good as equivalent or nearly so with no regard to w ...

is willing to accept for that commodity.

Auctions

In auctions, the ask price is the reservation price. Some auctions may not have such a price. This price is the minimum that the seller will agree to for the object being sold.

References

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