The Ask price refers to the lowest price at which a seller agrees to sell its security. A transaction takes place only after the seller and the buyer agrees on a price that is no higher than a bid price and the ask price.

For example, if an investor wants to purchase a stock, it has to determine the price at which someone is willing to sell it. The bidder looks at the ask price, the lowest price someone is willing to sell the security for.

Ask price or offer price is always higher than the bid price and the difference between the bid price and the ask price is called the spread.