BOOMSTOCK BALLERS

[lukec511]

just because a trade goes through the bid, it does not mean someone is buying at the bid. You need to rememeber that trades always go though the dealer. A trade at the bid is the investor selling their shares to the dealer, and the trades at the ask are investors buying shares from the dealer. That is why there is a spread, the dealer makes money off of trades going through, buying and selling shares to investors.

Bid is the most a market maker is willing to pay for a share.

Ask is the cheapest the investor can buy a share from the dealers or market makers.

I use dealer and market maker as the same thing