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
- The optimal offering price for underwritten securities. – elibrary.ru [PDF]
- The post-offering price performance of closed-end funds – www.jstor.org [PDF]
- Equity issues and offering dilution – www.sciencedirect.com [PDF]
- Initial public offerings: daily returns, offering types and the price effect – www.tandfonline.com [PDF]
- Discretionary disclosure and external financing – www.jstor.org [PDF]
- Fads in the initial public offering market? – www.jstor.org [PDF]
- The optimal spread and offering price for underwritten securities – www.sciencedirect.com [PDF]
- Offering price clusters and underpricing in the US primary market – www.tandfonline.com [PDF]
- Discounting and clustering in seasoned equity offering prices – www.jstor.org [PDF]
- Underwriter price support and the IPO underpricing puzzle – www.sciencedirect.com [PDF]
