Bid Price/Ask Price
The term bid refers to the highest price a buyer will pay to buy a specified number of shares of a stock at any given time. The term ask refers to the lowest price at which a seller will sell the stock.
The bid price will almost always be lower than the ask or offer, price. The difference between the bid price and the ask price is called the spread.
Market Making
Order Book
Liquidity pool
Primary Market
A primary market is a source of new securities. Often on an exchange, it’s where companies, governments, and other groups go to obtain financing through debt-based or equity-based securities.
In the primary market, new stocks and bonds are sold to the public for the first time.
In a primary market, investors are able to purchase securities directly from the issuer.
Secondary Market
The secondary market is where investors buy and sell securities. Trades take place on the secondary market between other investors and traders rather than from the companies that issue the securities.
Security
Property or goods that you promise to give to someone if you cannot pay what you owe them.