The lowest price a seller is currently willing to accept for a share.
Why it matters
The ask helps show immediate selling interest and is one side of the bid-ask spread.
The highest price a buyer is currently willing to pay for a share.
Why it matters
The bid helps show immediate buying interest and is one side of the bid-ask spread.
Market Terms
IPO — Initial Public Offering
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The first time a private company offers shares to the public and becomes listed on a stock exchange such as the Philippine Stock Exchange.
Why it matters
An IPO allows investors to buy shares in a company as it enters the public market. It can also raise new capital for the company.
Example
A Philippine company may conduct an IPO and list its shares on the PSE so public investors can buy and sell them.
How easily shares can be bought or sold without causing a large price change.
Why it matters
Low-liquidity shares may be harder to sell quickly and may have wider bid-ask spreads.
The process of having a company's shares admitted for trading on a stock exchange such as the Philippine Stock Exchange.
Why it matters
Once listed, the company's shares can normally be bought and sold by investors through the stock exchange.
Example
After completing the required listing process, a company's shares may begin trading on the PSE.
Market Terms
Market Capitalization
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The company’s share price multiplied by its total outstanding shares.
Why it matters
It measures the market value of the company’s equity, not whether the shares are cheap or expensive.
