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Value: 2 From the stock quotes above, we see that MSFT has a bid price of $ and an ask price of $ Bid price
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From the stock quotes above, we see that MSFT has a bid price of $ and an ask price of $ Bid price is the buy price quoted by the market maker, so it is the price we would to the market maker.
Ask price is the sell price quoted by the market maker, so it is the price we would from the market maker.
Notice that the ask price is than the bid price. The difference between the ask and bid prices is called the spread, which represent the profit of the market maker.
As you can see, the market makers act as the middle men in the market, and they make money by standing ready to buysell the stock and providing liquidity to the market.
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