What is an 'Offer'

An offer is i) a conditional proposal made by a buyer or seller to buy or sell an asset, which becomes legally enforceable if accepted, ii) the act of offering something for sale, iii) a bid or offer to buy something.

BREAKING DOWN 'Offer'

An offer is a clear proposal to sell or buy a specific product or service under specific conditions, and is made in a manner that a reasonable person would understand its acceptance will result in a binding contract. There are many different types of offers, each of which has a distinct combination of features ranging from pricing requirements, rules and regulations, type of asset and the buyer's and seller's motives.

Example of an Offer

For example, prospective home buyers will write an offer to the seller, and often list the highest price they are willing to pay. In equity and debt offerings, the offering price is the price at which publicly issued securities are offered for purchase by the investment bank underwriting the issue. A tender offer is an offer to buy a company’s stock or debt from existing stockholders and bondholders at a specified price and during a set period of time.

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