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. Term

    Negotiating the Bid

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

    How Bid Price Affects Liquidity

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

    What is Earnest Money?

    An earnest money deposit shows the seller that a buyer is serious about purchasing a property.
  4. 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 ...
  5. Active Trading Fundamentals

    What Does Bid And Asked Mean?

    Bid and asked is a two-way price quotation.
  6. 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.
  7. Investing Basics

    The Basics Of The Bid-Ask Spread

    The bid-ask spread is essentially a negotiation in progress. To be successful, traders must be willing to take a stand and walk away in the bid-ask process through limit orders.
  8. Term

    Explaining Dutch Auction

    A Dutch auction is a public offering auction.
  9. Investing

    Arm's Length Transaction

    An arm’s length transaction describes business deals in which the buyer and seller act independently and with no interest in the other’s benefit.
  10. Savings

    Where To Put Your Cash: Call Deposit Vs Time Deposit Accounts

    Time deposit accounts and call deposit accounts allow customers to earn higher interest in exchange for less access to their cash.
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. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  6. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
Trading Center