1. An offer made by an investor, a trader or a dealer to buy a security. The bid will stipulate both the price at which the buyer is willing to purchase the security and the quantity to be purchased.
2. The price at which a market maker is willing to buy a security. The market maker will also display an ask price, or the amount and price at which it si willing to sell.
This is the opposit of the ask, which astipulates the price a seller is willing to accept for a security and the quantity of the security to be sold at that price.
1. An example of bid in the market would be Rwf 200 X 1000, which means that an investor is willing to purchase 1,000 shares at the price of Rwf 200. If a seller in the market is willing to sell that amount for that price, then the transaction is completed.
2. Market makers are vital to the efficiency and liquidity of the marketplace. By quoting both bid and ask prices on the market, they always allow investors to buy or sell a security if they need to.
The Bid Price is the price a buyer is willing to pay for a security. This is one part of the bid with the oter being the bid size, which details the amount of shares the investor is willing to purchase at the bid price. The opposite of the bid is the ask price, which is the price a seller is looking to get for his or her shares.