Dynamic Stock Market Content: What Is A Bid

Have you ever gone to a flee market or a swap meet? This is where there are vendors, buyers and sometimes the occasional looky loo. The main reason for flee markets is: A place where local merchants, vendors and customers can come and either buy or show case their stuff for sales.

Well the stock market is some what of a flee market. For the beginner stock market investor who does not understand how the stock market works, the easiest way to explain the stock market would be that the market is a swap meet where companies, institutional bankers and individual like you and me go and buy stock. While the stock market is unlike your normal flee market, the NYSE stock market plays the same function.

Now what is a bid? Lets say for example you went to your favorite flee market and found a piece of art work that you would like to purchase.

You then proceed to negotiate with the artist and bid $80 for the piece of art work. The artist can either sell you the art work at $80 or decline your bid because their asking price is $100. In essence the concept is the same in the stock market. As a beginner stock market investor or trader, you can electronically show up at the stock market and bid, (meaning wanting to buy a particular stock at $15.36) in your case the artist would be the broker dealer, specialist or market maker. These people can either agree to sell you stock AGTF at $15.36 or refuse your bid.

In clear lay mans terms a bid is what the buyer is willing to pay for a specific stock. If you are on the bid you want to buy the stock. If you are on the offer or ask you want to sell the stock.

Stock market for beginners school has many video lessons that can help you understand the stock market better. Please head over to: http://www.youtube.com/watch?v=CAxTcEteTJE to watch some stock market basics videos

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For stock market courses and lessons in video format, make sure you visit these video lessons: http://www.youtube.com/watch?v=CAxTcEteTJE