The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for a security. This spread represents the cost of trading and market liquidity.
Compound from 'bid' (Old English beodan, meaning to offer or command) and 'ask' (Old English ascian, meaning to request). These terms have been used in auctions and trading for centuries, formalized in modern securities markets.
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