fixed price offer

fixed price offer
A method of implementing an offer for subscription or offer for sale. When a company is issuing shares, it will invite applications for shares at a predetermined price under a fixed price offer. The benefit of this is that it eliminates uncertainty for investors and the company as to the price that will be set for the issue. The disadvantage is that it can be difficult to identify an appropriate price at which to sell the issue. Alternative approaches include a tender offer and bookbuilding. Dresdner Kleinwort Wasserstein financial glossary

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   New issues are offered on either a tender or a fixed price reoffer basis. In the latter, the issue is marketed at a predetermined fixed price and coupon. Most new bond issues are offered on this basis.
   ► See also Tender Offer.

Financial and business terms. 2012.

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Look at other dictionaries:

  • fixed-price offer for sale — /fɪkst ˌpraɪs ˌɒfə fə seɪl/ noun an offer to purchase shares in a new company for a price which has been fixed at flotation (as opposed to tendering) …   Dictionary of banking and finance

  • Fixed-price tender offer — A one time offer to purchase a stated number of shares at a stated fixed price, usually a premium to the current market price. The New York Times Financial Glossary …   Financial and business terms

  • fixed-price tender offer — A one time offer to purchase a stated number of shares at a stated fixed price, usually at a premium over the current market price. Bloomberg Financial Dictionary …   Financial and business terms

  • offer for sale — An issue of shares by a company where investors are invited to buy the shares from an issuing house which has subscribed for the shares from the company. The issuing house may also buy shares from existing shareholders in the company and sell… …   Financial and business terms

  • price — A fixed value of something. Prices are usually expressed in monetary terms. In a free market, prices are set as a result of the interaction of supply and demand in a market; when demand for a product increases and supply remains constant, the… …   Financial and business terms

  • offer for sale — An invitation to the general public to purchase the stock of a company through an intermediary, such as an issuing house or merchant bank (compare offer by prospectus); it is one of the most frequently used means of flotation. An offer for sale… …   Accounting dictionary

  • offer for sale — An invitation to the general public to purchase the stock of a company through an intermediary, such as an issuing house or merchant bank (compare offer by prospectus); it is one of the most frequently used means of flotation An offer for sale… …   Big dictionary of business and management

  • fixed — [[t]fɪ̱kst[/t]] ♦♦♦ 1) ADJ: usu ADJ n You use fixed to describe something which stays the same and does not or cannot vary. They issue a fixed number of shares that trade publicly. ...a world without fixed laws... Tickets will be printed with… …   English dictionary

  • offer for subscription — An issue of shares by a company where investors are invited to subscribe for the shares directly with the company. A method of issuing shares when obtaining a listing for the first time on the Stock Exchange. Dresdner Kleinwort Wasserstein… …   Financial and business terms

  • Price discrimination — or price differentiation[1] exists when sales of identical goods or services are transacted at different prices from the same provider.[2] In a theoretical market with perfect information, perfect substitutes, and no transaction costs or… …   Wikipedia

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