General Securities Principal Qualification (Series 24) Practice Exam

The inside bid is the highest price that buyers are currently willing to pay for the security. It sits at the top of the bid side of the quotation and represents the best bid available in the market. If a seller is willing to accept that price (or a buyer offers even higher), a trade can occur. This is different from the current market price, which is typically the last trade price, and from the most recent trade price, which reflects the last executed transaction rather than the latest bid quotes. The lowest price a seller is willing to accept is the inside ask, not the inside bid.