|
|
Offer |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
OfferIn the stock market, offer means that a seller is willing to sell a share at a given price.In contract law, an offer is one half of the contract equation, the other being 'acceptance'. Once an offer is accepted, whether verbally or in writing, both buyer and seller are bound by an agreement, provided that 'consideration' has been provided. Contracts for the sale of land have to be in writing.OfferIndicates a willingness to sell at a given price. Related: Bid.Offer Similar MatchesFixed price tender offerFixed price tender offerA one-time offer to purchase a stated number of shares at a stated fixed price, usually at a premium over the current market price. Offering dateOffering dateDate on which a new set of stocks or bonds will first be sold to the public. Open offerOpen offerAn open offer, also known as an entitlement issue, is an offer made by a quoted company to its shareholders inviting them to buy new shares in the company at a set price, which is normally lower than the current market price.The purpose, as with a rights issue, is to raise new capital for the company. Unlike a rights issue, an open offer cannot be traded or sold on by the shareholder - usually, if you do not take up your entitlement, it lapses. Because of this, when an open offer is announced, you will be allocated sub shares, not nil paid shares.The other way that open offers differ from rights issues is that sometimes you will be allowed to apply for more than your strict entitlement under what is known as 'excess application'. Shareholders tell the company (or its registrar) how many shares they want to buy, including any excess shares, and pay over money to cover their application. The company, before announcing the offer, will have determined how much capital it wants to raise, and the number of shares it needs to sell in order to raise the amount. When it has received all applications, it will either scale them back (if more shares have been applied for than it wants to sell) or it will issue all the shares requested (including any excess applications). If a shareholder's application is scaled back, he or she will be repaid funds for the shares not actually issued.One point worth noting is that shareholders who hold the relevant company shares in a PEP, ISA and SIPP will only be able to take up their entitlement rights if they have enough money in those accounts to pay for the new shares. For the purposes of CGT, the acquisition date for an open offer is the acceptance date that a client took up their entitlement. Tender offer premiumTender offer premiumThe premium offered above the current market price in a tender offer. Offering memorandumOffering memorandumA document that outlines the terms of securities to be offered in a private placement. Further SuggestionsOffer curveCompetitive offering Dual syndicate equity offering tender offer rights offering Targeted registered offerings Asked to bid or offer Offerings General cash offer electronic public offering London Inter Bank Offered Rate Exchange offer Secondary distribution or offering Offering scale Public offering price Shelf offering public offering Secondary Offering Offer price Rights offering Cash offer Buy Sell Offer Self tender offer Public securities offering Public offering |
|
|
|