What is the difference between the stock price and the selling price?

The difference between stock price and the selling price is called the spread. The spread is the broker’s margin for making the trade and an indicator for the investor’s liquidity of the stock.

The actual value of a stock is not always determined by its price. The price means the amount of money the stock is trading at in the market. In other words, the buyer and seller agree on this price.

In an instance where the number of buyers is higher than sellers, the stock price goes up. Should vice versa be the case, the stock price goes down. The two prices of a stock - the buy and sell - can determine your investment returns.