Offering Price

Dictionary Says

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.
Investopedia Says

Investopedia explains '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.

Related Definitions

  • Underwriting

    1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The ...
    Read More »
  • Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately ...
    Read More »
  • Public Offering

    The sale of equity shares or other financial instruments by an organization to the public in order to raise funds for business expansion and investment. Public offerings of corporate ...
    Read More »
    • Going Public

      The process of selling shares that were formerly privately held to new investors for the first time. Otherwise known as an initial public offering (IPO).
      Read More »
    • Prospectus

      A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details about an investment offering for sale to the public. A ...
      Read More »

Articles Of Interest

Partner Links