What is bid in stock market?

In the stock market, the "bid" price is the highest price that a buyer is willing to pay for a particular stock or other security. It is typically quoted as part of a two-price system that also includes the "ask" price, which is the lowest price that a seller is willing to accept for the security.

The difference between the bid and ask prices is known as the "bid-ask spread," and it represents the cost of buying or selling a particular security. The spread is typically expressed as a percentage of the security's price, and it can vary depending on a number of factors such as the liquidity of the security, the supply and demand for the security, and the overall market conditions.

In general, the bid price is lower than the ask price, and the difference between the two prices is known as the "markup." This markup represents the profit that the seller expects to make on the transaction. When an investor buys a security, they will typically pay the ask price, and when they sell a security, they will receive the bid price.