offering price

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Offering Price

The price at which an investment, asset or other transaction is quoted to a potential buyer. That is, the offering price is what a potential seller is willing to take. It may or may not be negotiable.

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.

Offering price.

A security's offering price is the price at which it is taken to market at the time of issue. It may also be called the public offering price.

For example, when a stock goes public in an initial public offering (IPO), the underwriter sets a price per share known as the offering price. Subsequent share offerings are also introduced at a specific price.

When the stock begins to trade, its market price may be higher or lower than the offering price. The same is true of bonds, where the offering price is usually the par, or face, value.

In the case of open-end mutual funds, the offering price is the price per share of the fund that you pay when you buy.

If it's a no-load fund or you buy shares with a back-end load or a level load, the offering price and the net asset value (NAV) are the same. If the shares have a front-end load, the sales charge is added to the NAV to arrive at the offering price.

References in periodicals archive ?
5% above the offering prices on average, far below the average of 44.
Market prices of almost all 2006 IPOs are currently below the offering prices.
These figures demonstrate that the offering prices of IPOs since the spring of 2007 have been quite low.
The offering prices for the most recent life insurance company conversions were, on average, only 90.
While many variables determine an offering price, the tendency to set offering prices below book value may, in many cases, be unwarranted.
In November, the company sold through the underwriting syndicate 1,250,000 shares of common stock and 1,250,000 warrants at the initial public offering prices indicated above.
had exercised its option to purchase and additional 187,500 shares of the company's common stock at an initial public offering price of $.
Despite the unfavorable market conditions, market prices at four of the March 2007 IPOs are more than twice as high as the offering prices.
As I noted earlier, the market prices of 16 of the 43 IPOs thus far in 2007 were below their offering prices at the end of March.
The calculations run through your mind: Each $1 increase in the offering price would have generated $2 million more for the company.
The company, an online financial news service, went public January 15, 1999, with an offering price of $17.