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.


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.

  1. Blind Bid

    An offer to purchase a bundle of securities without knowing the ...
  2. Invitation For Bid - IFB

    When a company or organization provides detailed project specifications ...
  3. Unsolicited Bid

    An offer made by an individual, company or group of investors ...
  4. Sealed-Bid Auction

    A type of auction process in which all bidders simultaneously ...
  5. Bidding War

    A situation where two or more buyers are so interested in an ...
  6. Hockey Stick Bidding

    An anti-competitive bidding practice in which a market participant ...
Related Articles
  1. Bonds & Fixed Income

    Auction Rate Securities: Bidding On The Long Run

    These investments do better with a long-term horizon. Should you buy them before they're going, going, gone?
  2. Investing Basics

    Are ETFs the Best Way to Diversify with Bonds?

    Are bonds safe or risky right now? It depends on the type of bond and how you invest in them.
  3. Investing

    How ETFs May Save You Thousands

    Being vigilant about the amount you pay and what you get for is important, but adding ETFs into the investment mix fits well with a value-seeking nature.
  4. Savings

    Become Your Own Financial Advisor

    If you have some financial know-how, you don’t have to hire someone to advise you on investments. This tutorial will help you set goals – and get started.
  5. Investing Basics

    What Does Plain Vanilla Mean?

    Plain vanilla is a term used in investing to describe the most basic types of financial instruments.
  6. Investing

    How to Win More by Losing Less in Today’s Markets

    The further you fall, the harder it is to climb back up. It’s a universal truth that is painfully apparent in the investing world.
  7. Investing Basics

    5 Common Mistakes New Investors Make

    When it’s time to start investing, watch out for these five common beginner’s mistakes.
  8. Investing Basics

    5 Investing Statements That Make You Sound Stupid

    If you want to talk investments without being mocked, avoid these five statements.
  9. Mutual Funds & ETFs

    Top 4 Investment Grade Corporate Bonds ETFs

    Discover detailed analysis and information about some of the top exchange-traded funds (ETFs) that offer exposure to the investment-grade corporate bond market.
  10. Investing

    How to Effectively Monitor Your Stock Holdings

    Investors should concentrate on the business, not the stock price.
  1. What are the risks of annuities in a recession?

    Annuities come in several forms, the two most common being fixed annuities and variable annuities. During a recession, variable ... Read Full Answer >>
  2. Are high yield bonds a good investment?

    Bonds are rated according to their risk of default by independent credit rating agencies such as Moody's, Standard & ... Read Full Answer >>
  3. Do mutual funds invest only in stocks?

    Mutual funds invest in stocks, but certain types also invest in government and corporate bonds. Stocks are subject to the ... Read Full Answer >>
  4. What is a stock split? Why do stocks split?

    All publicly-traded companies have a set number of shares that are outstanding on the stock market. A stock split is a decision ... Read Full Answer >>
  5. What is the relationship between the current yield and risk?

    The general relationship between current yield and risk is that they increase in correlation to one another. A higher current ... Read Full Answer >>
  6. How do I place an order to buy or sell shares?

    It is easy to get started buying and selling stocks, especially with the advancements in online trading since the turn of ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  2. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  3. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  4. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  5. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  6. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!