Retract

DEFINITION of 'Retract'

The withdrawal of a bid, offer or statement before any relevant party acts on the information provided. In most circumstances, retracting an offer within a proper time frame will relieve a person of any obligations associated with the bid.

BREAKING DOWN 'Retract'

Before retracting a bid, there may be some things worth considering. For example, it is common practice in real estate transactions to provide a deposit, known as earnest money, to the seller. This shows the buyer's intention to complete the transaction. If the buyer decides to retract the offer on the property, he or she may also be required to forfeit the deposit.

RELATED TERMS
  1. Election Period

    The period of time during which an investor who owns an extendable ...
  2. Retractable Preferred Shares

    A specific type of preferred stock thats lets the owner sell ...
  3. Retractable Bond

    A bond that features an option for the holder to force the issuer ...
  4. Clawback

    1. Money or benefits that are distributed and then taken back ...
  5. Earnest Money

    A deposit made to a seller showing the buyer's good faith in ...
  6. Bid Price

    The price a buyer is willing to pay for a security. This is one ...
Related Articles
  1. Economics

    Full Recession

    This is the time where the economy is really suffering.
  2. Term

    Negotiating the Bid

    A bid is an offer investors make to buy a security.
  3. Term

    How Bid Price Affects Liquidity

    The bid price is the amount a buyer will pay for a security.
  4. Economics

    What is Earnest Money?

    An earnest money deposit shows the seller that a buyer is serious about purchasing a property.
  5. Professionals

    Locked And Crossed Markets

    Market makers may not enter quotes that would lock or cross the market. A locked market is one where the bid and offer are equal in price. For example, if another market maker came into the above ...
  6. Investing

    What's a T Bond?

    Treasury bonds, or T-bonds, are marketable securities issued by the US government, and are available in increments of $100. Bonds have a maturity range of ten to 30 years, with 30 being the most ...
  7. Active Trading Fundamentals

    What Does Bid And Asked Mean?

    Bid and asked is a two-way price quotation.
  8. Bonds & Fixed Income

    How To Read A T-Bill Quote

    If you want buy and sell US Treasury bills, you need to learn to read the quotes.
  9. Professionals

    Registered Traders

    A registered trader is an exchange member who trades for their own account and for their own profit and loss. Orders may not originate on the floor of the NYSE; however, registered traders are ...
  10. Retirement

    Electronic Trading: The Role of a Market Maker

    Market makers compete for customer order flows by displaying buy and sell quotations for a guaranteed number of shares. The difference between the price at which a market maker is willing to ...
RELATED FAQS
  1. How do earnest money deposits work in a short sale?

    Find out how earnest money deposits work in a short sale real estate contract, including when earnest money is forfeit and ... Read Answer >>
  2. What do the bid and ask prices represent on a stock quote?

    Learn what the bid and ask prices mean in a stock quote. Find out what represents supply and demand in the stock market and ... Read Answer >>
  3. When should a real estate broker release earnest money deposit funds?

    Find out when and under what circumstances a real estate broker is allowed to release the earnest money deposit in a real ... Read Answer >>
  4. When is a takeover bid legally canceled?

    When a firm makes an official bid to take over a target company, a legal offer is created. The firm making the offer becomes ... Read Answer >>
  5. What do the numbers that follow the bid and ask numbers in stock quotes represent? ...

    When looking at stock quotes, there are numbers following the bid and ask prices for a particular stock. These numbers usually ... Read Answer >>
  6. What does the variance between the bid and ask price of a stock mean?

    Find out how stocks are traded in the market, why the bid and ask prices are different and why the bid-ask spread is smallest ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center