Offering Price

AAA

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 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 TERMS
  1. Underwriting

    1. The process by which investment bankers raise investment capital ...
  2. Prospectus

    A formal legal document, which is required by and filed with ...
  3. Public Offering

    The sale of equity shares or other financial instruments by an ...
  4. Going Public

    The process of selling shares that were formerly privately held ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  6. Steve Cohen

    A trading magnate also referred to as the Hedge Fund King and ...
Related Articles
  1. Brokerage Functions: Underwriting And ...
    Brokers

    Brokerage Functions: Underwriting And ...

  2. 5 Tips For Investing In IPOs
    Investing

    5 Tips For Investing In IPOs

  3. IPO Basics Tutorial
    Retirement

    IPO Basics Tutorial

  4. How Bitcoin Casinos Work
    Investing Basics

    How Bitcoin Casinos Work

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. 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. ...
  3. Due Diligence - DD

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

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. 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 ...
  6. 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 ...
Trading Center