Low Ball

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Dictionary Says

Definition of 'Low Ball'

A slang term for an offer that is significantly below the fair value of an asset or group of assets. A low-ball offer would be any offer to purchase a security that would be considered to be unfairly low, however might be a best offer in some instances, due to the securities being distressed or the seller being in a desperate position.
Investopedia Says

Investopedia explains 'Low Ball'

This tactic is often used when a potential seller is in desperation and may need to liquidate assets quickly. For example, if someone were to offer $2500 for an $8000 asset, this would likely be considered a low-ball offer.

Alternatively, in situations of negotiation, it is not uncommon for prospective buyers to begin the negotiations with a low ball to gauge the seller's expectations for the value of the asset. This is not uncommon in real estate negotiations.

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'Low Ball'

  • Buying A Home: Write An Offer | Investopedia

    http://www.investopedia.com/university/home/home7.asp
    ... at a low enough price. In this case, you might want to make a low ball offer
    and see what happens. Low balling can be risky, though ...

  • Will eBay's Numbers Match Its Business?

    http://stocks.investopedia.com/stock-analysis/2011/Will-eBays-Numbers-Match-Its-Business-EBAY-AMZN-V-MA-PAY-MSFT-IBM1021.aspx
    ... that has withered AOL (NYSE:AOL), Yahoo (Nasdaq:YHOO), and a host of businesses
    that have either taken low-ball bids or gone out of business altogether. ...

  • PPD Goes Private

    http://stocks.investopedia.com/stock-analysis/2011/PPD-Goes-Private-PPDI-CVD-PRXL-CRL-ICLR-ERT-PFE-MRK1005.aspx
    ... If the best of the breed has to take what looks like a low-ball offer, it
    doesn't speak well to the state of the industry or the amount of M&A interested ...

  • More To Merck Than Meets The Eye?

    http://stocks.investopedia.com/stock-analysis/2011/More-To-Merck-Than-Meets-The-Eye-MRK-VRTX-BMY-ABT-LLY-NVO-PFE0622.aspx
    ... long run. Low Growth and a Few Key Gaps Growth is relatively scarce in
    the pharmaceutical space, and Merck is no exception. Still ...

  • Nathan's Famous Goes Dutch

    http://stocks.investopedia.com/stock-analysis/2011/Nathans-Famous-Goes-Dutch-NATH-MCD-YUM-WMT1209.aspx
    ... Others see this as a move by management to prevent a low-ball buyout offer.
    Whatever the reasons, long-time investors have to be thrilled. ...

  • Gold Scams To Watch Out For - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/Gold-Scams-To-Watch-Out-For.aspx
    ... Be aware of low-ball pricing, in which a dealer will offer considerably less than
    an item is worth. If you're not satisfied with the offer, walk away. ...

  • Seagate Decides To Stay Public

    http://stocks.investopedia.com/stock-analysis/2010/Seagate-Decides-To-Stay-Public-STX-EMC-WDC-HIT-AAPL1202.aspx
    With rumors of low-ball bids, Seagate takes itself off the auction block.

  • How To Negotiate A Great Price On A Car - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0311/How-To-Negotiate-A-Great-Price-On-A-Car.aspx
    ... Be Bold Don't be afraid to make a low-ball offer to start things off. If
    you're afraid of offending or insulting the salesman by ...

  • Cash America Upbeat In A Down Market

    http://stocks.investopedia.com/stock-analysis/2008/Cash_America_Upbeat_In_A_Down_Market.aspx
    ... to learn more, see Payday Loans Don't Pay.) I think Cash America probably knew things
    were looking up even when it made its original, low-ball, predictions. ...

  • 3 Pharma Overachievers

    http://stocks.investopedia.com/stock-analysis/2010/3-Pharmaceutical-Overachievers-NPSP-PPH-IDIX-OSIP-ALPMF-QQQQ0507.aspx
    ... The Japanese outfit has offered $52 per share, which many believe is a low-ball
    offer and will likely be raised before the May 15 deadline on the offer passes. ...

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