Quick question about the NASDAQ, bid, and asking prices.?

Question

I have a quick NASDAQ question. To actually make money trading stocks, does the bid price have to be higher than the asking price? Thanks.

Answer 1

What Jerry J says has to happen for a sale to take place (if there are no market buy orders which would fill at the ask).

But to answer your question, to make money trading stocks, you have to sell enough of them at at a higher price than you buy them (not necessarily in that order).  Or you may make something from dividends.  Riskier methods are trading options, or selling borrowed stock first (short) hoping to buy it back (to close) at a lower price.

Answer 2

Bid price has to be equal to the asking price

Answer 3

The bid price is the price that people are willing to buy the stock at.

The ask price is the price that people want to sell the stock at.

They are rarely ever equal and the stock price is somewhere  in the middle.

It isn't really too important the actual stock price is the only thing that you need to worry about.

Answer 4

the bid price can not be higher than the asking price

The quoted market is always the highest bid and the lowest asking price.

The bid price is what someone wants to pay for a stock,

the asking price is what someone wants to sell the stock at.

If a buyer wants to buy the stock, they have to reach up to the asking price or enter a higher bid and wait as see what happens

If a seller wants to sell the stock, they have to drop down to the bid price or enter a lower asking price and wait and see what happens

This is just not for NASDAQ it's for all securities markets.

And to make money you just have to sell the stock at a higher price than you paid for it.