What is a Best Ask?
A best ask is simply the calculation of the lowest price that a seller is willing to entertain in return for selling off the shares of a particular security or set of securities. There are several factors to take into consideration when determining the best ask. Here are some examples of elements to sellers often determine before arriving at a best ask. Essential to determining the best ask for securities is having a firm understanding of the level of investment in the security package thus far. Based on the amount of resources that were needed to acquire the security in the first place, the seller will usually want to recover the initial investment, as well as make at least a modest profit on the sale. Unless there are highly unusual circumstances, most sellers will not arrive at a best ask that will ultimately mean a financial loss. Second, the market performance of the security will also play a role in determining the best ask. This will mean taking an intensive look at the history
