offer price

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Offer price

See: Offer.

offer price

see BID PRICE.
References in periodicals archive ?
However, as Lowry and Schwert (2004) note, while the finding that underwriters tend to omit available information is puzzling, this does not constitute conclusive evidence against the efficiency of IPO pricing as regular IPO shares are nontraded and rationed so that investors cannot trade at initial or offer prices.
3) Hanley (1993) finds that IPOs with offer prices above the maximum of the filing price range quoted in the preliminary prospectus have an average initial return of 21%.
Prospect theory is consistent with both private and public information not being fully incorporated in the offer price.
In a sample of 6,391 IPOs from 1980 to 2003, Loughran and Ritter (2004) report an average initial return, the percentage change between the offer price and the first closing price, of 6.
1) The more favorable the private information, the higher the price update (the percentage difference between the final offer price and the midpoint of the initial price range) and, proportionately, the greater the initial returns are.
As such, Benveniste and Spindt's (1989) model predicts that the offer price should fully incorporate all public information available prior to and during the registration period.
more underpriced) are those where both the offer price and the market price are higher than had been originally anticipated.
In this environment, for efficient pricing of subsidiary IPOs, the information contained in the return of the parent firm prior to the initial pricing period should be incorporated in the initial price range, and information contained in the return of the parent firm prior to and during the book-building period should be incorporated in the final offer price.
Our analyses corroborate Lowry and Schwert's (2004) conclusion that the implicit assumption in previous studies that the midpoint of the preliminary price range is the best unbiased predictor of the offer price is open to question.
To provide an incentive for truthful revelation, underwriters reward informed investors by not adjusting the offer price to the full extent of the privileged information revealed, allowing these investors to earn higher returns on the opening day of the issue.
The offer price is usually set after the market closes on the day before the issue day.
Ship sails Venice Corfu Santorini Mykonos Katakolon Venice Dubrovnik Piraeus Izmir Split Venice Reader offer prices from .