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 ?
They argue that informed investors may attempt to influence offering prices by selling shares before the SEO, and profit subsequently from lower prices in the SEO.
Discounting and clustering in seasoned equity offering prices. Journal of Financial and Quantitative Analysis, 39(1), 1-24.
All six began trading at a level below their offering prices.
Looking at the secondary market, 51 of the 105 IPOs of the first 10 months of 2007 were trading below their offering prices as of October 31.
The offering prices for the most recent life insurance company conversions were, on average, only 90.9% of book value.
The investment bankers who took Theglobe.com public set an offering price of $9 per share, allowing the company to raise nearly $29 million in capital.
Three of the four offerings that started trading on June 9 (Lintronic, Inc.; Skechers USA, Inc.; Pantry, Inc.) closed below their offering prices. Skechers USA produces casual footwear, while Pantry operates a chain of convenience stores.
The calculations run through your mind: Each $1 increase in the offering price would have generated $2 million more for the company.
Opening prices of the 12 IPOs in August were only 15.5% above the offering prices on average, far below the average of 44.1% for all 89 IPOs thus far in 2007.
Market prices of almost all 2006 IPOs are currently below the offering prices. Furthermore, some of these prices are as much as about 60% below the offering prices.
Opening prices of the 23 March 2007 IPOs were 40.7% above the offering prices on average compared with 39.7% for the 20 IPOs in February 2007.