Unsolicited Bid

DEFINITION of 'Unsolicited Bid'

An offer made by an individual, company or group of investors to purchase a company that was not actively seeking a buyer. The bid is a result of the unsolicited bid submitter's initiative and not due to any request made by the bid-upon company. Unsolicited bids may also sometimes be referred to as hostile bids if the company being bid for doesn't want to be acquired.

BREAKING DOWN 'Unsolicited Bid'

An unsolicited bid to purchase a company that was not intending to sell may be followed by other unsolicited bids as the news travels. These other bids may up the purchase price and start a bidding war or takeover fight. Unsolicited bidding can occur when a company wants to purchase another company in order to control its market share, profit from its expected growth, have access to proprietary technology or limit competitors from taking advantage of these situations.

RELATED TERMS
  1. Bid Price

    The price a buyer is willing to pay for a security. This is one ...
  2. Bid Tick

    An indication of whether the latest bid price is higher, lower ...
  3. Best Bid

    The highest quoted bid for a particular trading instrument among ...
  4. Bid Size

    The number of shares being offered for purchase at a specified ...
  5. Bid Support

    A manipulative practice employed to prop up a company’s stock ...
  6. Any-and-All Bid

    A bid made to purchase all stock being offered at a specific ...
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. 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 ...
  4. Home & Auto

    How To Create A Real Estate Bidding War

    There are still many areas in the United States that are attractive enough to buyers that you can start a good, old-fashioned bidding war on your property.
  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. Term

    Explaining Dutch Auction

    A Dutch auction is a public offering auction.
  8. 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.
  9. Investing Basics

    What is a Takeover?

    A takeover happens when one company makes a bid to acquire a target company.
  10. Investing

    Why We Need Antitrust Laws (MSFT, AAPL)

    A look at antitrust laws in the United States and the many anticompetitive practices they safeguard against.
RELATED FAQS
  1. 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 >>
  2. 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 >>
  3. How do day traders capture profits from the difference between bid and ask prices?

    Discover how day traders capture profits from the difference between bid and ask spreads. These spreads blow out during volatile ... Read Answer >>
  4. Why are the bid prices of T-bills higher than the ask prices? Aren't bids supposed ...

    Yes, you are correct that the ask price of a security should typically be higher than the bid price. This is because people ... Read Answer >>
  5. 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 >>
  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. Labor Market

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

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. 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 ...
  4. White Squire

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

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center