Counterbid

DEFINITION of 'Counterbid'

A purchase offer made in counter to the offer of another potential purchaser. The term is often used in discussing the sale of one business to another. During a bargaining process it is not uncommmon for each side to issue multiple counter offers during the negotiation process.

BREAKING DOWN 'Counterbid'

Counter offers can come in a variety of options. During a sale negotiation either party will make counter offers opposing the other party's offer to reach an agreed price which more closely suits their preferred price. Informal counter offers occur on a daily basis as well, when deciding where to eat lunch to what to watch on the television.

RELATED TERMS
  1. Negotiation

    A strategic discussion that resolves an issue in a way that both ...
  2. Counter Currency

    The currency used as the reference or second currency in a currency ...
  3. Negotiated Underwriting

    A process in which both the purchase price and the offering price ...
  4. Offer

    1. When one party expresses interest to buy or sell an asset ...
  5. Open Offer

    A secondary market offering that is similar to a rights issue ...
  6. Brinkmanship

    A negotiating technique in which one party aggressively pursues ...
Related Articles
  1. Home & Auto

    Playing Hardball When Selling Your Home

    Using these strategies will help you get more cash when selling your house.
  2. Personal Finance

    Master The Art Of Negotiation

    Learn the strategies that will help you to come out on top in any negotiation.
  3. Investing

    Trading Over the Counter

    OTC trades tend to be for smaller company stocks and debt securities. Debt securities such as bonds are generally traded by investment banks making markets for specific issues.
  4. Entrepreneurship

    Ready to Retire? Here's How to Sell and Close Your Small Business

    Learn the essential steps to prepare to sell your business with the best possible outcome, a secure retirement for you and your family.
  5. Personal Finance

    Salary Negotiation Strategies That Can Backfire

    While you want the best salary you can get, failing to understand when, how, and why to negotiate may lead to undesirable results.
  6. Credit & Loans

    Buying A Home: Write An Offer

    By Amy FontinelleIf you've found that perfect home, congratulations! You've potentially reached the end of the searching process - but first you'll have to write an offer and the seller will ...
  7. Personal Finance

    The Layoff Payoff: A Severance Package

    If you must leave your job, go out fighting for the best benefits you can get.
  8. Bonds & Fixed Income

    The Issuance Procedure of Corporate High-yield Bonds

    Issuing debt over equity can have several advantages for companies. Here we have a detailed look on the issuance procedure of corporate high-yield bonds.
  9. Investing

    What is Market Value?

    Market value is the price of an asset that is traded or offered for sale in a public forum where multiple buyers are allowed to make offers to buy that asset.
  10. Investing Basics

    What Is The Difference Between The Bond Market And The Stock Market?

    The differences between the two markets involve how each product is traded and the risks they present.
RELATED FAQS
  1. How is spread calculated when trading in the forex market?

    First, remember that in the forex markets investors trade one currency for another. Therefore, currencies are quoted in terms ... Read Answer >>
  2. Why are most bonds traded on the secondary market "over the counter"?

    Like stocks, after issuance in the primary market, bonds are traded between investors in the secondary market. However, unlike ... Read Answer >>
  3. What are interest rate swaps on the OTC market?

    Learn about interest rate swaps and how they are traded over the counter, and understand the impact of Dodd-Frank on swaps ... Read Answer >>
  4. What is the difference between derivatives and options?

    Learn how options are one type of derivative and how equity options derive their value from a stock, and understand other ... Read Answer >>
  5. Are mortgage rates negotiable?

    Learn what parts of a mortgage are negotiable, what closing costs can sometimes be negotiated away altogether and how to ... Read Answer >>
  6. A person purchases stock XYZ (an Over The Counter stock) from a company who is also ...

    The correct answer is c When the firm is a market maker in the stock then it must act as a principle. Principal is the main ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center