Re-Offer Price
Definition of 'Re-Offer Price'A price at which the underwriting syndicate of a debt issue resells the bonds to public investors. The syndicate will purchase the bonds for a specified amount from the issuing firm and re-offer the bonds to the public, usually at a different price. |
|
Investopedia explains 'Re-Offer Price'An underwriting investment bank may facilitate a debt issue by agreeing to purchase all of the bonds for a price below face value. Having the underwriters purchase the bond issue, instead of passing the sale onto the public, removes the company's risk of not selling the entire issue. The investment banker will re-offer the bonds to public investors at a higher price, which may be above (premium) slightly below (discount) par value. In a serial issue, most common to municipal GO bonds, the first bonds to mature are frequently at a premium with a higher coupon rate. The last bonds to mature in the offering are sometimes sold at a discount, but carry a lower coupon rate. |
Related Definitions
Articles Of Interest
-
Basics Of Federal Bond Issues
Treasuries are considered the safest investments, but they should still be analyzed when issued. -
What Are Corporate Actions?
Be a savvy investor - learn how corporate actions affect you as a shareholder. -
Will Corporate Debt Drag Your Stock Down?
Borrowed funds can mean a leg up for companies, or the boot for investors. Find out how to tell the difference. -
Bond Basics Tutorial
Investing in bonds - What are they, and do they belong in your portfolio? -
What Is Private Equity?
This investment vehicle attracts wealthy investors to increase the value of portfolio companies. -
Should You Offer Alternative Investments?
Find out what problems arise for financial representatives when they start to diversify their client offerings. -
How To Become An Investment Bank Analyst
Financial services firms are taking a laser-like focus on analyst responsibilities and will favor candidates who bring the following "must-have" attributes to the negotiation table. -
The Best Training Programs For CFP Exams
The competition to become a financial planner is hot, and growing hotter. Find out the best way to preparing to land the CFP designation. -
Why Companies Stay Private
Many private companies prefer to stay private and find alternate sources of capital. Find out what firms have to gain by eschewing the windfall from a flashy IPO. -
Top 4 Financial Jobs You Can Do From Home
You don't have to go to an office to make a great salary in the financial sector. Here are the top four highest paying financial jobs you can do from home.
Free Annual Reports