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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 MatchesSelf tender offerSelf tender offerA company that tenders for its own shares. Blank check offeringBlank check offeringAn initial public offering by a company whose business activities are undefined and therefore peculative. 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. Offer for saleOffer 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. Cash 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. Further SuggestionsExchange offerrights offering Paris Interbank Offer Rate (PIBOR) Secondary distribution or offering London Inter Bank Offered Rate Targeted registered offerings London interbank offered rate Offer price Blitzkrieg tender offer General cash offer tender offer Secondary Offering Offerings bid offer spread electronic public offering Reoffering yield Public securities offering Offering scale Offering date Creeping tender offer Competitive offering bid/offer spread Split offering Offer curve Offering statement |
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