Offer

AAA

DEFINITION of 'Offer'

1. When one party expresses interest to buy or sell an asset from another party. The offering price is often the highest the buyer will pay to purchase an asset, and the lowest that the seller will accept.

2. The act of making an asset available for sale.

INVESTOPEDIA EXPLAINS 'Offer'

1. There are many different types of offers, each of which has a distinct combination of features ranging from pricing requirements, rules and regulations, type of asset, and the buyer's and seller's motives.

For example, when purchasing a house, prospective buyers will make an offer to the seller, and will often list the highest price he or she is willing to pay. However, if another prospective buyer enters the scene and a bidding war ensues, each buyer will continue to bid until his or her maximum price level is attained.

2. Firms can offer a variety of things to the investment community. For example, when a firm has an equity or debt offering, it will offer shares or bonds to investors. Similarly, the company may offer rights to its shareholders, which allow them to purchase more stock.

RELATED TERMS
  1. Godfather Offer

    An irrefutable takeover offer made to a target company by an ...
  2. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  3. Offering

    The issue or sale of a security by a company. It is often used ...
  4. Open Offer

    A secondary market offering that is similar to a rights issue ...
  5. Counteroffer

    A type of offer made in response to another offer, which was ...
  6. Acquisition

    A corporate action in which a company buys most, if not all, ...
Related Articles
  1. Do You Need A Home Inspection?
    Home & Auto

    Do You Need A Home Inspection?

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

    Corporate Bonds: An Introduction To ...

  3. The Basics Of Municipal Bonds
    Bonds & Fixed Income

    The Basics Of Municipal Bonds

  4. A Breakdown Of Stock Buybacks
    Investing

    A Breakdown Of Stock Buybacks

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center