What term is used for the minimum price a dealer will sell a security for?

Prepare for the FBLA Securities and Investments Exam with questions, flashcards, and hints to enhance your knowledge and boost your confidence. Excel on your exam!

The term that refers to the minimum price a dealer will sell a security for is the ask price. This represents the lowest price that a seller is willing to accept for a security, providing a clear indication of the seller's intentions in the market.

When trading securities, buyers and sellers interact through these prices. The ask price is crucial for investors as it determines the cost at which they can purchase a security. Understanding the ask price allows investors to make informed decisions based on their trading strategies and market conditions.

In this context, the bid price represents the maximum price that a buyer is willing to pay for a security, while the market price is the last price at which a transaction occurred. The equilibrium price is not a term generally used in this specific trading context, but rather relates to the balance between supply and demand in broader economic models. Thus, the ask price is essential for understanding the mechanics of trading and investment.

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