Offering Price


DEFINITION of 'Offering Price'

The price at which publicly issued securities are made available for purchase by the investment bank underwriting the issue. A security's offering price includes the underwriter's fee and any management fees applicable to the issue.

BREAKING DOWN 'Offering Price'

Underwriters analyze numerous factors when attempting to determine a security's offering price. Ideally, an investment bank should accurately assess the value of the securities and the underlying firm, raising funds for the issuing company and selling the securities to investors for a fair offering price.

  1. Initial Public Offering - IPO

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  2. Underwriting

    1. The process by which investment bankers raise investment capital ...
  3. Going Public

    The process of selling shares that were formerly privately held ...
  4. Public Offering

    The sale of equity shares or other financial instruments by an ...
  5. Prospectus

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    Making an investment to reduce the risk of adverse price movements ...
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