Bid Price

Bid Price

The highest price a bidder is willing to pay for an asset or security in an auction or tender. It is the price that a bidder submits as a bid, hoping to win the auction or tender.

Key Points:

• Bid price: The highest price a bidder is willing to pay.
• Maximum bid: The highest price a bidder is willing to bid, regardless of the competition.
• Opening bid: The first bid made in an auction or tender.
• Reserve price: The minimum price at which the asset or security will be sold.
• Winning bid: The bid that is accepted by the auctioneer or tenderer.

Examples:

• In a car auction, the winning bid is the highest price the buyer is willing to pay for the car.
• In a stock tender, the winning bid is the highest price per share that the investor is willing to pay.

Additional Notes:

• Bid prices can be expressed in a variety of units, such as dollars, euros, or pounds.
• The bid price is typically the same as the winning price, unless there are any fees or commissions involved.
• The bid price is binding on the bidder, and the bidder is required to pay the winning price if their bid is accepted.