blind bid(redirected from Blind Bids)
A bid, usually by a portfolio manager, to buy a portfolio of stocks without knowing what stocks are included. Blind bids are useful when the portfolio manager wishes to buy stocks without affecting their market prices. Obviously, however, not knowing what stocks are included can be quite risky.
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An offer to purchase a basket of stocks without knowing exactly which stocks are included in the basket. Portfolio managers utilize blind bids when they risk affecting the market prices of stocks they buy and sell.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.