Offering

DEFINITION of 'Offering'

The issue or sale of a security by a company. It is often used in reference to an initial public offering (IPO) when a company's stock is made available for purchase by the public but it can also be used in the context of a bond issue.

BREAKING DOWN 'Offering'

Usually, a company will offer stock or bonds to the public in an attempt to raise capital to invest in expansion or growth. There are instances of companies offering stock or bonds because of liquidity issues (i.e. not enough cash to pay the bills), but investors should be wary of any offering of this type.

RELATED TERMS
  1. Issue

    1. The process of offering securities as an attempt to raise ...
  2. Initial Public Offering - IPO

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

    The price at which new issues of stock are offered to the public ...
  4. Public Company

    A company that has issued securities through an initial public ...
  5. Halted Issue

    A planned security offering that does not go forward as planned. ...
  6. Secondary Offering

    1. The issuance of new stock for public sale from a company that ...
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RELATED FAQS
  1. What are the different types of IPO issued?

    Learn about the two ways for a company to go public: fixed price and book building. Under fixed price, the share price is ... Read Answer >>
  2. What is the difference between an IPO and a private placement?

    Learn the differences between private placements and initial public offerings that companies use to raise capital through ... Read Answer >>
  3. How can average investors get involved in an IPO?

    An initial public offering, or IPO, is the first sale of stock by a new company, usually a private company trying to go public. ... Read Answer >>
  4. When should a company consider issuing a corporate bond vs. issuing stock?

    Understand when a company should consider issuing a corporate bond versus issuing stock, and learn about the underlying principle ... Read Answer >>
  5. Are IPOs available to short sell immediately upon trading, or is there a time limit ...

    The quick answer to this question is that an IPO can be shorted upon initial trading, but it is not an easy thing to do at ... Read Answer >>
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    Discover the various different types of debt securities, issued by government entities or corporations, that are available ... Read Answer >>
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