negotiated offering

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Negotiated offering

An offering of securities for which the terms, including underwriters' compensation, have been negotiated between the issuer and the underwriters.

Negotiated Offering

A way of making a new issue of securities in which the issuer hires an underwriting firm or syndicate and negotiates all terms of the issue with them. In general, a negotiated offering involves the underwriters guaranteeing that the issue will be placed with investors at a certain price in exchange for a fee to the underwriters. It contrasts with multiple competitive bidding. Most offerings, however, are negotiated.

negotiated offering

A method by which a securities issuer selects an investment banking firm to assist in or guarantee the sale of securities on the basis of discussions and factors including the best price.
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In 1970, 83 percent of municipal bonds were sold competitively, with 17 percent sold through negotiated offerings.
Underwriters for negotiated offerings of municipal securities are now required to disclose to their state and local government clients risks about complex financial transactions, potential conflicts of interest and compensation received from third-party providers of derivatives and investments, among other new requirements.
Based on dollar volume for long-term municipal issues, Thomson ranked Fulbright the nation's 2nd top disclosure counsel, 6th best bond counsel in negotiated offerings, 7th top bond counsel in all offerings, and 8th top underwriters' counsel.