Bid Wanted

DEFINITION of 'Bid Wanted'

An announcement by an investor who holds a security that he or she is looking to sell, telling interested parties that they can send in bids. A bid-wanted announcement does not represent an agreement to sell, but can lead to prices being negotiated.

BREAKING DOWN 'Bid Wanted'

Bid-wanted announcements are most likely used when investors do not want to solicit bids for securities directly and instead obtain bids through a broker. Brokers are tasked with identifying other parties that may be interested in bidding on the security and may only send the bid-wanted announcement to a set of investors rather than to the entire market. Using a bid-wanted announcement to obtain bids may not help the seller obtain the highest price for a security, but is likely to provide a much higher level of privacy. This may be important to sellers who do not want to communicate that they are shifting their financial positions.

A bid-wanted announcement lists the time when bids are welcome and the time when the winning bid must be honored, which is called the firm time. In periods of high volatility, the firm time becomes increasingly important to the seller, since the longer the period is between when the bid is offered and when it is honored, the more time the buyer has to revise the bid.

RELATED TERMS
  1. Bid Price

    The price a buyer is willing to pay for a security. This is one ...
  2. Bid Tick

    An indication of whether the latest bid price is higher, lower ...
  3. Best Bid

    The highest quoted bid for a particular trading instrument among ...
  4. Bid Whacker

    A slang term for an investor who sells shares at or below the ...
  5. Bid Support

    A manipulative practice employed to prop up a company’s stock ...
  6. Bid Size

    The number of shares being offered for purchase at a specified ...
Related Articles
  1. Investing

    Negotiating the Bid

    A bid is an offer investors make to buy a security.
  2. Markets

    How Bid Price Affects Liquidity

    The bid price is the amount a buyer will pay for a security.
  3. Markets

    What's a T Bond?

    Treasury bonds, or T-bonds, are marketable securities issued by the US government, and are available in increments of $100. Bonds have a maturity range of ten to 30 years, with 30 being the most ...
  4. Trading

    What Does Bid And Asked Mean?

    Bid and asked is a two-way price quotation.
  5. Markets

    How To Read A T-Bill Quote

    If you want buy and sell US Treasury bills, you need to learn to read the quotes.
  6. Markets

    Explaining Dutch Auction

    A Dutch auction is a public offering auction.
  7. Investing

    The Basics Of The Bid-Ask Spread

    The bid-ask spread is essentially a negotiation in progress. To be successful, traders must be willing to take a stand and walk away in the bid-ask process through limit orders.
  8. Personal Finance

    Why We Need Antitrust Laws (MSFT, AAPL)

    A look at antitrust laws in the United States and the many anticompetitive practices they safeguard against.
  9. Investing

    Role Of A Market Maker

    A market maker is a firm or an individual that stands ready to buy and sell a particular security throughout the trading session to maintain liquidity and a fair and orderly market in that security. ...
  10. Markets

    Stock Quotes Explained

    Curious about how stock quotes are compiled and what a trader should know about how? Read on.
RELATED FAQS
  1. What do the bid and ask prices represent on a stock quote?

    Learn what the bid and ask prices mean in a stock quote. Find out what represents supply and demand in the stock market and ... Read Answer >>
  2. What do the numbers that follow the bid and ask numbers in stock quotes represent? ...

    When looking at stock quotes, there are numbers following the bid and ask prices for a particular stock. These numbers usually ... Read Answer >>
  3. How do day traders capture profits from the difference between bid and ask prices?

    Discover how day traders capture profits from the difference between bid and ask spreads. These spreads blow out during volatile ... Read Answer >>
  4. Why are the bid prices of T-bills higher than the ask prices? Aren't bids supposed ...

    Yes, you are correct that the ask price of a security should typically be higher than the bid price. This is because people ... Read Answer >>
  5. What does the variance between the bid and ask price of a stock mean?

    Find out how stocks are traded in the market, why the bid and ask prices are different and why the bid-ask spread is smallest ... Read Answer >>
  6. How are after hour trading rates determined?

    I am new to stock buying and I was just wondering that if I buy stocks after trading hours (normally 4.30 EST for NASDAQ) ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center