Open Offer


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.


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.

  1. Overvalued

    A stock with a current price that is not justified by its earnings ...
  2. Rights Offering

    An issue of rights to a company's existing shareholders that ...
  3. Subsequent Offering

    An offering of additional shares after the issuing company has ...
  4. Initial Public Offering - IPO

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

    A reduction in the ownership percentage of a share of stock caused ...
  6. Secondary Offering

    1. The issuance of new stock for public sale from a company that ...
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