Bidding is a process of requesting and submitting offers to buy a certain type of asset. It may be used in a variety of situations, including government purchases, or the sale of real estate. The term “Bid” may also refer to a formal request for the bid. In this case, it is often submitted by a prospective buyer to an individual or organization that plans to sell a certain item. The prospective buyer will then receive multiple quotations.In the context of a market, the bid price is a price at which sellers are willing to sell their goods and services. For example, if an investor wants to purchase shares in a company, she will make a bid by offering to pay a certain price, which she expects will be accepted by other investors who have also made bids. Bids are usually posted publicly, giving other investors the chance to either accept or reject them.When multiple bids are received, they are typically sorted from highest to lowest. The highest bid is then accepted and the asset is sold to the winning bidder. This is why the bid price is always lower than the asking price. Otherwise, it would be impossible for the highest bid to be accepted.
