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Offer for sale |
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Offer for saleOne of the ways a company can float its shares on a stock exchange is to issue a prospectus announcing its intention to issue new shares, set a price for them, and invite the public to apply for them at the advertised price. The alternative route is to issue shares and 'place' them in the hands of a number of institutions who then release them on to the secondary market.Placing is much cheaper for companies than an offer for sale and, since the London Stock Exchange scrapped its rule requiring large flotations to include an offer to the public, companies have increasingly come to market by way of placing. This can be frustrating for private investors who can only buy the shares in the ' secondary' market (i.e. post-new issue trading) and feel they are denied the opportunities that institutions get.Similar MatchesCash offerCash offerOften used in risk arbitrage. Proposal, either hostile or friendly, to acquire a target company through the payment of cash for the stock of the target. Compare to exchange offer. OfferingsOfferingsOften refers to initial public offerings. When a firm goes public and makes an offering of stock to the market. Offering dateOffering dateDate on which a new set of stocks or bonds will first be sold to the public. Shelf offeringShelf offeringOffering of registered securities covered by a prospectus whose distribution is not underwritten on a firm commitment basis. The shares may be sold in one block or in small amounts from time to time in agency or principal transactions. See: Rule 415. Split offeringSplit offeringA municipal bond issue that is made up of serial bonds and term maturity bonds. Further SuggestionsOffering statementSelf tender offer Public offering price Dual syndicate equity offering initial public offering Creeping tender offer Targeted registered offerings Reoffering yield General cash offer Godfather offer Asked to bid or offer London Interbank Offered Rate (LIBOR) Fixed price tender offer Blank check offering offer bid/offer spread open offer Rights Offering Underwritten offering public offering Rights offering Elastic offer curve Secondary Offering Blitzkrieg tender offer Competitive offering |
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