Non-Competitive Tender

DEFINITION of 'Non-Competitive Tender'

One of the two bid processes for buying debt issuances. Non-competitive tender is for small investors, while competitive tender is for large institutional investors. The price that a non-competitive bidder receives is the average bid price of all competitive bids.

Also known as a "non-competitive bid".

BREAKING DOWN 'Non-Competitive Tender'

This is a method of distribution used primarily by the U.S. Treasury. The minimum non-competitive tender is $10,000, and these are usually made through a Federal Reserve Bank or a commercial bank.

There is no guarantee on the price or the amount received.

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RELATED FAQS
  1. Why would it be in the interest of shareholders to accept a tender offer?

    Learn when it is in the best interests of shareholders to accept a tender offer. A tender offer is a bid to buy a large portion ... Read Answer >>
  2. How do I buy treasury bills?

    Discover how Treasury Bills (T-bills) are a safe-bet investment for short-term returns. The percentages on the returns vary. Read Answer >>
  3. If a company offers a buyback of its shares, how do I decide whether to accept the ...

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  5. What do the bid and ask prices represent on a stock quote?

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    When looking at stock quotes, there are numbers following the bid and ask prices for a particular stock. These numbers usually ... Read Answer >>
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