Bid Wanted In Competition - BWIC

AAA

DEFINITION of 'Bid Wanted In Competition - BWIC'

A situation where an institutional investor submits its bond bid list to various securities dealers. In a bid-wanted-in-competition situation, the dealers are allowed to make bids on the listed securities. The dealers with the highest bids are then contacted.

INVESTOPEDIA EXPLAINS 'Bid Wanted In Competition - BWIC'

This approach works best on more-liquid securities. For situations where less-liquid bonds are involved, an investor uses a dealer similarly to a broker. An order with a predefined spread range is submitted to a dealer, and it is up to the dealer to fill that order within a limited timespan.

RELATED TERMS
  1. Dealer

    A person or firm in the business of buying and selling securities ...
  2. Agent

    1. An individual or firm that places securities transactions ...
  3. Liquidity

    1. The degree to which an asset or security can be bought or ...
  4. Bond

    A debt investment in which an investor loans money to an entity ...
  5. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
Related Articles
  1. Brokerage Functions: Underwriting And ...
    Brokers

    Brokerage Functions: Underwriting And ...

  2. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  3. Wanna Be A Bigwig? Try Investment Banking
    Professionals

    Wanna Be A Bigwig? Try Investment Banking

  4. Corporate Bonds: An Introduction To ...
    Bonds & Fixed Income

    Corporate Bonds: An Introduction To ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center