Investing for Beginners , investing

Ask price is the lowest price at which seller of a security is willing to sell indicated amount of securities. In stock exchange many investors leave their sell orders through their brokers and every sell order that stays on the exchange will have its ask price of an order, but the lowest one will be the ask price of that stock. 

Ask price means that any investor can buy that security at the ask price any time without leaving his bid in the market, but the amount of securities available at that price may be limited.

Ask price always has to be higher than bid price (otherwise transaction would go through), and the spread between ask price and bid price is called as ‘bid-ask spread’. Ask price can be applied not only for stocks, but for other securities or commodities too. Ask price also can be called as offer price or asking price.