Offering Price

Definition

Ask price, also called offer price, offer, asking price, or simply ask, is the price a seller states they will accept.


Offering Price

What is an ‘Offering Price’

An offering price is the price at which publicly issued securities are made available for purchase by the investment bank underwriting the issue. A security’s offering price includes the underwriter’s fee and any management fees applicable to the issue.

Explaining ‘Offering Price’

Underwriters analyze numerous factors when attempting to determine a security’s offering price. Ideally, an investment bank should accurately assess the value of the securities and the underlying firm, raising funds for the issuing company and selling the securities to investors for a fair offering price.

Further Reading