This article relies largely or entirely on a single source . Relevant discussion may be found on the talk page . Please help improve this article by introducing citations to additional sources . Find sources:   "Bid price"  ?  news   · newspapers   · books   · scholar   · JSTOR ( January 2020 )

A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for some goods. It is usually referred to simply as the "bid". In bid and ask , the bid price stands in contrast to the ask price or "offer", and the difference between the two is called the bid?ask spread . An unsolicited bid or purchase offer is when a person or company receives a bid even though they are not looking to sell.

Bidding war [ edit ]

A bidding war is said to occur when a large number of competing bids are placed in rapid succession by two or more entities, especially when the price paid is much greater than the ask price , or greater than the first bid in the case of unsolicited bidding.

In other words, a bidding war is a situation where two or more buyers are interested in an item (such as a house or a business) that they make increasingly higher-priced offers in attempts to outbid others and win the ownership of the item. ^[1]

In real estate, a potential buyer can increase their bid in a number of different ways. Some common ways a bidder can increase their bid such as offering a higher purchase price, reduce the number of contingencies, pay with cash or even write a letter to appeal to the seller. These are all strategies that are proven to increase the odds of the buyer winning the bidding war. ^[2]

In the markets [ edit ]

In the context of stock trading on a stock exchange , the bid price is the highest price a buyer of a stock is willing to pay for a share of that given stock. The bid price displayed in most quote services is the highest bid price in the market . The ask or offer price on the other hand is the lowest price a seller of a particular stock is willing to sell a share of that given stock. The ask or offer price displayed is the lowest ask/offer price in the stock market.

See also [ edit ]

• Ask price
• Bidding fee auction
• Call for bids
• Unique bid auction

References [ edit ]

External links [ edit ]

• Securities and Exchange Commission definition of "bid price"

This article about stock exchanges is a stub . You can help Wikipedia by expanding it .

• v
• t
• e