What term refers to the price at which a dealer is willing to purchase a security from a seller?

The term that refers to the price at which a dealer is willing to purchase a security from a seller is known as the bid. The bid price is an important concept in trading because it indicates the maximum price that a buyer is willing to pay for a security at a given time. This concept is crucial for traders as it helps in determining the market value of a security and impacts trading strategies.

In the context of the options provided, the ask (or offer) refers to the price at which a seller is willing to sell a security. The spread represents the difference between the bid price and the ask price. Understanding these terms and their relationships is essential for engaging with the financial markets effectively.