The bid- ask spread is the difference between the price sellers are asking for and the price that buyers are willing to pay. Bid is the available price at which an investor can sell shares and ask is the available price at which an investor can buy shares. Bid and ask together create the dealer’s quotation. This system of bid and ask pricing is used by the stock markets to match buyers and sellers. The ask price is almost always a little higher than the bid price. The difference, or spread, between bid and ask is what the market makers use as their profit margin for handling the transaction.