What is the difference between a bid price and an offer price?
Bid Price, also known as redemption price, is the buying price of the Investment funds units. That is, if a client wants to surrender the policy, the insurance company provides a bid price. ‘ On the other hand an Offer Price, also called the issue price, refers to the selling price of the investment funds units. This means that if a client wants to buy additional units, the insurance company provides an offer price. The difference between the bid price and the offer is called the Bid-offer spread, which is usually pegged at 5%.
Related Questions
- Scrip Code Open, High, Low and Last Traded Price Best Bid / Offer with Volume Traded Volume Close and Last Traded Quantity (Only for live feed) 2. What is Level 2 Data Feed?
- We put in a bid on a house for the full asking price but another higher offer was accepted. Why didn we get a chance to counter offer?
- Do all plans have the same spread between the bid and offer price?
