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Microcap & Penny Stocks : Trading 101
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To: Pody who wrote (338)6/26/1998 4:18:00 PM
From: JCinTC  Read Replies (1) of 406
 
The bid is the best price a MM(market maker, a specialist who makes a market in a stock) will buy it from a retail seller for.(you selling) The ask is the best price a MM will sell a stock to a retail buyer for.(you buying)
The difference between bid & ask is called the spread. The spread is usually close in a heavily traded issue, & wide in a lightly traded issue.
Hint, you can always place a limit order for less than the ask when buying or for more than the bid when selling & they may fill it or price may move for a min. & get you filled.
JC
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