USA TODAY financial markets reporter Matt Krantz answers a new question every weekday at money. If you've ever traded in a car at car dealership, you understand the difference between the "bid" and "ask" price of a stock.

The Bid/Ask Spread, and How it Costs Investors

The bid is the price the dealer is willing to pay to buy from you, be it your used car or a stock you're selling.

That's the "bid" price. That's the ask price. The "spread" is the difference between the two: The same goes for stocks. If you're looking to sell a stock, a broker will offer to buy it for one price, the bid. And if you're looking to buy it, the broker will offer to sell it to you for another, higher ask price.

The spread is the broker's profit. Luckily for everyone, other than brokers, the difference between bid and ask prices has gotten quite small. The more frequently a stock trades, the closer the bid and ask get. In other words, the spread gets smaller.

You can see the bid and ask prices on any stock at money. Put the stock's name or ticker symbol in the Quick Quote box. Here's a link to the page with GE's information. Which should you pay when you're buying? That's the price the broker qld trading hours anzac day 2016 charge bid vs ask stock market.

When you're selling, you will get the bid price. Matt Krantz is a financial markets reporter at USA TODAY.

He answers a different reader question every weekday bid vs ask stock market his Ask Matt column at money. To submit a question, e-mail Matt at mkrantz usatoday. Search How do I find it?

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Which one should I pay when I buy? Newspaper Home Delivery - Subscribe Today. USA WEEKEND Sports Weekly Education Space. How do I find it? ASK MATT ABOUT STOCKS. Got a question about the stock market or a specific stock? Read previous Ask Matt columns. Need a way to track your stocks or funds?

investing - Can someone explain a stock's "bid" vs. "ask" price relative to "current" price? - Personal Finance & Money Stack Exchange

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