meaning of Bid-offer Spread

Bid-offer Spread meaning in Finance Dictionary

the essential difference between the selling price together with price for assets.once you ask a brokerage what cost the stocks of an organization are investing at in the market, he can quote two rates: the bid pricing is the purchase price where you are able to offer your shares, and provide price is the cost of which you should buy all of them. The foremost is constantly less than the next, and difference between them could be the spread.Market producers, just who behave like wholesalers in the stock exchange, make their particular profit from the scatter - buying shares on quote cost and attempting to sell them in the provide price