offering price

Offering Price

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.

Notes:

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.

See also: Going Public, IPO, Prospectus, Public Offering, Underwriting

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offering price

The price at which an investment is offered to buyers. This price, including any sales fee, is fixed by the underwriting syndicate. Also called fixed price.