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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 MatchesParis Interbank Offer Rate (PIBOR)Paris Interbank Offer Rate (PIBOR)The deposit rate on interbank transactions in the Eurocurrency market quoted in Paris. Targeted registered offeringsTargeted registered offeringsSecurities issues sold to "targeted" foreign financial institutions according to U.S. Securities and Exchange Commission guidelines. These foreign institutions then maintain a secondary market in the foreign market. Intrastate offeringIntrastate offeringA securities offering limited to just one state in the United States. Bid/offer spreadBid/offer spreadThe difference between the selling price and the purchase price for investments.When you ask a broker what price the shares of a company are trading at in the market, he will quote two prices: the bid price is the price at which you can sell your shares, and the offer price is the price at which you can buy them. The first is always lower than the second, and the difference between them is the spread.Market makers, who act like wholesalers in the stock market, make their profit from the spread - buying shares at the bid price and selling them at the offer price Underwritten offeringUnderwritten offeringA purchase and sale. Further SuggestionsExchange offeroffer price Fixed price tender offer London interbank offered rate Cash offer Offering memorandum Public securities offering Offer price Dual syndicate equity offering Offering date London Inter Bank Offered Rate Offering scale London Interbank Offered Rate (LIBOR) Asked to bid or offer Elastic offer curve Secondary distribution or offering General cash offer Public offering price Competitive offering Inelastic offer curve Godfather offer Shelf offering Buy Sell Offer Self tender offer Public offering |
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