From my experience with stock market investing, it is important to start with the basics. That is why our discussion will begin with the topic of share price (which is also known as stock price). Although share price is by no means an easy topic to cover, it is a core principle in stock market investing. Without a good understanding of share price, it will be nearly impossible to successfully invest in the stock market. That said, what is share price? In its most basic and commonly used form, a...

The bid price and ask price  are two of the most quoted, yet at the same time least understood, share price metrics available to stock market investors. Together the two price metrics give birth to a more complex metric called the bid-ask spread, but for now the focus will be on the basic price metrics. In the context of stock markets, the bid price is the highest share price that a buyer is willing to pay for stock of a corporation at a specific time. The prevailing bid price is also the price...