When looking at the bid and ask for a security, we are essentially examining the prices at which investors are willing to buy and sell at a specific point in time. The bid represents the highest price a buyer is willing to pay, while the ask represents the lowest price a seller is willing to accept. This difference is known as the bid-ask spread and is a key indicator of market liquidity. It is important to understand this concept in order to make informed investment decisions in the world of finance.
