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The bid price is the price at which a dealer or other trader is willing to purchase a security. The ask price is the price at which a dealer or other trader will sell a security.

So, if you called your broker and asked for the market price of Altria (MO), they might tell you that the best bid price is $75.00 and the best ask price is $75.05. This means that the investor would need to pay $75.05 to purchase a share, and could receive $75.00 if they were to sell some of your holdings. This spread is how the dealer makes their money. The only way that this may change is if you have very large orders, many times of more than 1,000 shares. Then the order may have to be filled at many different prices, but chances are not many people are going to fill orders that large. Best of luck, I hope this helps.

Dan
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