competitive bidding

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Competitive bidding

A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Competitive Bid

A sealed bid, given to an issuer by an underwriter, containing a prospective price and terms for a contract. At the close date of bidding, the issuer picks the best offer. U.S. Government agencies are usually required to use this process and award the contract to the least expensive option. This is also used for various other ventures, from IPOs to project finance.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

competitive bidding

1. A method by which a corporation or government organization wishing to sell securities in the primary market chooses an investment banker for the sale on the basis of the best price submitted by interested investment bankers. Municipal governments and public utilities are often required to ask for competitive bids on new security issues. See also negotiated offering.
2. The bidding on U.S. Treasury securities in which an investor stipulates a particular price or yield.
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.
References in periodicals archive ?
The Commission's guidance is based on a ruling of the EU Court of Justice (C-26/03 Stadt Halle), which requires transparent and competitive award procedures whenever public contracts or concessions are awarded to PPPs.
Now the Forum of Private Business (FPB) says the bidding process for public contracts should bemade more accessible to small firms and is urging the government to intervene if it is to achieve its target of awarding 30% of public contracts to small companies.
Frequently the officials letting public contracts belong to the old-body network.
The implications for prime contractors are clear: those that have good working relationships with qualified minority or women's business enterprises (MBEs and WBEs) could enjoy a significant competitive advantage in bidding for public contracts. In fact, some contractors have gone so far as to invest in a minority business.

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