How do I read/interpret a stock quote/bid-ask table?

The order board is a table that summarizes the buyers (Bid) and sellers (Ask) of a stock. The table shows how much buyers and sellers are willing to buy and sell at different price levels. Below is a sample stock quote:

• Bids Column – Shows the number of bids/orders at different prices
• Bid Vol Column – Shows the total number of shares/volume of all interested buyers at different prices
• Bid Column – Shows the price points of the stock that have interested buyers
• Asks Column – Shows the number of sell orders at different prices
• Ask Vol Column – Shows the total number of shares/volume of all interested sellers at different prices
• Ask Column – Shows the price points of the stock that have interested sellers

In the illustration shown above, the best bid price for Ayala Land Inc. (ALI) is at 37.50 and there are a total of 200 shares that are in queue. In contrast, the best offer/ask price for ALI is at 38.00 and there are a total of 100,000 shares waiting to get sold. Usually, big volume at the Bid Vol column signifies strength for a stock since there are many interested buyers. On the other hand, big volume in the Ask Vol column signifies weakness for the stock since there are many willing sellers.

Say for example that you want to buy shares of ALI, and would want to buy it immediately then you could enter a buying order at the best selling price (38.00) or higher. You can post a price that is lower than the best selling price if you want to buy the stock at a lower price. However, there is a chance that your order will not get filled if no seller will be willing to sell the stock at your bid price.

The same idea is true when you want to sell a stock. If you want to sell ALI right away, then you should enter a selling order at a price where there are interested buyers (in this case 37.50 or lower). You can post a price that is higher than the best selling price if you want to sell the stock at a higher price. However, there is a chance that your order will not get filled if no buyer will be willing to buy the stock at your ask price.