understanding financial jargon
In most investment markets, the price that investors are willing to buy and sell shares, bonds or other investments, are set by auction. The 'spread' is the difference between the bid price (highest buying price) and offer price (lowest selling price), usually set by one or more market makers.
The spread typically represents the market makers profit, if the buy shares form one investor and immediately sell to another.
What to do if you need more help
If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.
We hope you found this information useful.
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