Open Offer

AAA

DEFINITION of 'Open Offer'

A secondary market offering that is similar to a rights issue in which a shareholder is given the opportunity to purchase stock at a price that is lower than the current market price. The purpose of such an offer is to raise cash for the company.

INVESTOPEDIA EXPLAINS 'Open Offer'

An open offer differs from a rights issue in that investors are unable to sell the stocks that they purchase under the open offer to other parties. Some investors see a secondary market offering as bad news because it causes stock dilution and may signal that the stock is overvalued.

RELATED TERMS
  1. Subsequent Offering

    An offering of additional shares after the issuing company has ...
  2. Primary Offering

    The first of issuance of stock for public sale from a private ...
  3. Counteroffer

    A type of offer made in response to another offer, which was ...
  4. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  5. Overvalued

    A stock with a current price that is not justified by its earnings ...
  6. Rights Offering (Issue)

    An issue of rights to a company's existing shareholders that ...
Related Articles
  1. Options & Futures

    Understanding Rights Issues

  2. Investing

    How does an IPO get valued? What are ...

  3. Retirement

    IPO Basics Tutorial

  4. Investing

    What's the difference between legal ...

Hot Definitions
  1. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  2. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  3. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  4. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  5. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  6. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
Trading Center