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.

RELATED TERMS
  1. Buyer's Market

    A situation in which supply exceeds demand, giving purchasers ...
  2. Right of First Offer

    A right of first offer is a contractual obligation that lets ...
  3. Best And Final Offer

    Best and final offer is a prospective buyer's last and highest ...
  4. Conditional Sales Agreement

    A conditional sales agreement grants possession of an asset to ...
  5. Seller's Market

    A seller's market is a market condition characterized by a shortage ...
  6. Buyer's Call

    A buyer's call is an agreement whereby a commodity purchase occurs ...
Related Articles
  1. Investing

    The Ins And Outs of Seller-Financed Real Estate Deals

    There's more than one way to buy or sell a house. Seller financing presents yet another unique option.
  2. Investing

    Home Sale Contingencies: What Buyers And Sellers Need to Know

    Home sale contingencies protect buyers who want to sell one home before purchasing another. Find out what buyers and sellers need to know about these contractual conditions.
  3. Investing

    7 Tips for Writing a Homebuyer’s Letter to a Seller

    To win a real estate bidding war, use these seven tips for writing a homebuyer’s letter to a seller that’s engaging and personal.
  4. Investing

    10 Tips for Getting a Fair Price on a Home

    When the housing market booms, it's tougher than ever to get a good price. Make sure the house you choose is worth the price you pay. Here are some tips on how to do that.
  5. Investing

    The Opening Cross: How Nasdaq Stock Prices Are Set

    Learn how the opening cross auction process determines prices of Nasdaq-listed securities at market open to ensure liquidity by matching buyers and sellers.
  6. Small Business

    Finding The Best Buyer For Your Small Business

    Learn more about the process business owners go through to seal a merger or acquisition deal.
  7. Trading

    Stock Futures vs. Stock Options

    A quick overview of how stock futures and stock options work and why you would pick one over the other depending on the strategy being used.
RELATED FAQS
  1. How is it possible to trade on a stock you don't own, as is done in short selling?

    Understand how the process of short selling allows a person to sell a stock without technically owning it. Read Answer >>
  2. What are the Differences Between Ex Works (EXW) and Free On Board (FOB)?

    Although these terms are similar, responsibilities and obligations are delegated to different parties in EXW and FOB. Read Answer >>
  3. What is an assumable mortgage?

    The purchase of a home is a very expensive undertaking and usually requires some form of financing to make the purchase possible. ... Read Answer >>
Hot Definitions
  1. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  2. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  3. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  4. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  5. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  6. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
Trading Center