4 Flashcards
What does ‘Bid Size’ refer to?
The number of individual buy orders they wish to buy
Bid Size indicates the total volume of shares that buyers are willing to purchase at a given price.
What is ‘Bid Price’?
The price buyers are willing to pay for the stock
Bid Price reflects the highest price a buyer is willing to pay for a stock.
Define ‘Ask Price’.
The price sellers are willing to sell the stock
Ask Price indicates the lowest price at which a seller is willing to sell a stock.
What does ‘Ask Size’ represent?
The total number of shares these sellers wish to sell
Ask Size indicates the number of individual sell orders placed by sellers.
Fill in the blank: Bid Size is the number of individual buy orders they wish to _______.
[buy]
True or False: The Ask Price is always higher than the Bid Price.
True
This reflects the typical market structure where sellers require a higher price than buyers are willing to pay.
What does the ‘total number of shares’ represent in the context of Bid Size and Ask Size?
The aggregate volume of buy or sell orders placed on an online platform
Total shares provide insight into market liquidity and demand.