Hit The Bid
Is it a fresh dance move? The latest Ariana Grande chart-topper? A new athletic take on the silent auction?
Close. It’s what happens in the trading world when a seller agrees to sell at a price offered by another broker.
Let’s say we’ve got 100 shares of a security that we’re looking to sell at $41 per share. Our broker lets the rest of the investment world know, and before too long, another broker contacts us with an offer: she’s willing to pay $38 per share, but not a penny more. “Nah,” we say, since we know the shares are worth more than that.
A little while later, our broker receives a bid for $39, a bid for $40, and a bid for $39.27. Since $40 seems to be the best deal we’re going to get, our seller hits the bid, which means he agrees to sell for $40 per share.
The goal here is to get the best price for the seller—that’s us—even if it ends up being less than our initial asking price.
Related or Semi-related Video
Finance: What does "Best Efforts" Mean?0 Views
Finance Allah shmoop What are best efforts or what is
the phrase best efforts even mean Well if you've ever
watched how your dad most the lawn versus how your
brother Mose the lawn well you've realized that well there
are varying levels of effort You actually almost never want
to invoke best efforts Has a legal clause in a
contract because it speaks to having pretty much everything within
your power to do something like from a contractual standpoint
the ranges usually from commercially reasonable efforts I'ii doing the
bare minimum Teo Just great by two Best efforts Like
generally you wind up with these terms when negotiating a
contract If the two sides can't agree on one thing
or another or a well basically don't trust each other
to actually put out best efforts to accomplish something then
whoever prevails the negotiation gets the better legal language in
the contract For commercially reasonable efforts you don't have to
act against your own business or financial interest But for
best efforts well you sometimes do best efforts means you
have to do all you can the best you can
I eat your best in order to fulfill the terms
of the contract Reasonable efforts fallen you know somewhere in
between so avoid best efforts wherever you can and just 00:01:16.74 --> [endTime] call him effort