Bid.
In plain English
The bid is the best price someone is willing to pay right now to buy a stock, bond, or other security. It sits opposite the ask, which is the lowest price a seller will accept. The small gap between them is the bid-ask spread. When you sell at the market, you generally receive the bid price. Bids come from many buyers competing, and the highest one becomes the quoted bid. Watching the bid and ask tells you roughly what you can sell or buy for at that moment.
01Why it matters
The bid is the price you can actually sell at right now, so understanding it explains why the price you get can differ slightly from the last quoted trade.
02The math, step by step
A stock shows a bid of 49.98 dollars and an ask of 50.02 dollars. If you sell at the market, you receive about 49.98 dollars per share, the bid.
03What this is NOT
The bid is NOT the ask. The bid is the highest price a buyer will pay; the ask is the lowest price a seller will accept. You usually sell at the bid and buy at the ask.