When buying or selling stocks, it’s essential to understand the concepts of Ask Price, Bid Price, and Last Sale Price. This will help you gain a clear view of the real price at which stocks are being traded. Think of the stock market as a constant exchange: every time you buy a stock, someone else is selling it, and every time you sell a stock, someone else is buying it.
At Hapi, we use the NBBO (National Best Bid and Offer), which ensures a consolidated reference of the best bid and ask prices available across all exchanges.
Let's see and example:
NBBO Quote
In the U.S., the National Best Bid and Offer (NBBO) provides a consolidated view of the highest bid and lowest ask prices across all exchanges. The Securities and Exchange Commission (SEC) created the NBBO to ensure brokers provide their customers with the best publicly available bid and ask prices when trading securities.
That’s why prices on Hapi represent the best price at which a trade can be executed at any given moment.
Last Sale Price
This is typically shown as the price of a stock and is exactly what it sounds like: the price at which a stock was last sold. It’s important to note that this is historical data (from the past) and might not reflect the price you would pay when buying the stock or the price you would receive when selling it.
Last Transaction
This is the price at which the stock was last traded. Like the Last Sale Price, this is also historical data.
What are Ask and Bid Prices?
The Bid Price and Ask Price represent the best-quoted prices for a stock or option across all exchanges.
Ask Price: The lowest price sellers are willing to accept and the price you, as an investor, would pay when buying a stock.
Bid Price: The price you would receive when selling a stock. It’s the price buyers are willing to pay, similar to an auction where the highest bid wins.
Summary:
The displayed price is the Last Sale Price, which reflects the most recent trade.
When buying a stock, you’ll pay the Ask Price.
When selling a stock, you’ll receive the Bid Price.
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