Bid Price Legal Definition

When multiple buyers bid, it can turn into an auction war where two or more buyers gradually place higher bids. For example, a company may set a asking price of five thousand dollars for a property. Bidder A could place an offer of three thousand dollars. Bidder B can offer three thousand five hundred dollars. Bidder A could counter with four thousand dollars. The cash prize is the amount of money a buyer is willing to pay for a security. It contrasts with the sale price, which is the amount for which a seller is willing to sell a security. The difference between these two prices is called a spread and is a source of profit for traders. So the higher the gap, the higher the profits. n.

an offer to purchase at a specific price indicated. This includes bids at an auction where people compete by increasing the bid until there is no more bid, or contractors offer to sign a contract to build a project or sell goods or services at a certain price, usually with the lowest bidder getting the job. Suppose Kwame wants to buy shares in ABC Company. The stock is trading in a range between $10 and $15. But Kwame is not willing to pay more than $12 for them. He places a limit order of $12 on ABC shares. This is its offer price. Finally, a price is set when a buyer makes an offer that his competitors do not want to exceed. This is very beneficial for the seller as it puts a second pressure on buyers to pay a higher price than if there were only one potential buyer. The price of an offer or payment offer for something, such as an item at an auction or for a project that accepts bids or offers. OFFER, contracts.

An auction is an offer to pay a certain price for an item to be auctioned. The bidder has the right to withdraw his offer at any time before it is accepted, which is usually expressed by hitting the hammer. 3 T. R. 148; Hardins Rep. 181; Sugd. Sell. 29; Babington on Auct. 30, 42; or the offer may be tacitly withdrawn. 6 Penn. St. R.

486; 8, ID. 408. Empty 0@ffer. Investors and traders are forced by a market order to buy at the current demand price and sell at the current offer price. Limit orders, on the other hand, allow investors and traders to buy with supply and sell on demand, giving them a better profit. The price offered by a bidder for an order is only valid for a certain period of time. In the context of stock trading, the offer price refers to the highest amount of money a potential buyer is willing to spend on it. Most prices, as displayed by listing services and on stock tickers, are the highest offer price available for a particular good, stock or commodity. The ask or offer price displayed by these pricing services corresponds directly to the lowest offer price for a particular stock or product on the market. In an options market, bid prices can also be market makers if the options contract market is illiquid or does not have sufficient liquidity. Bid prices are often specifically designed to achieve a desirable result from the company making the offer. For example, if the asking price of a property is forty dollars and a buyer wants to pay thirty dollars for the property, he or she could make an offer of twenty dollars and compromise and give up something by agreeing to meet in the middle – exactly where he wanted to be in the first place.

An offer price is a price offered for a good, service or contract. It is colloquially referred to as a „command“ in many markets and jurisdictions. In general, an offer is lower than the price of an offer, or „letter“, and the difference between them is called a supply-demand gap. Offers can also be made in cases where the seller does not want to sell, in which case this is considered an offer or an unsolicited offer. An offer is an offer to perform a contract of employment or to deliver materials at a certain price. An auction does not create rights for the bidder or target recipient until the target recipient voluntarily accepts the bid. Start your free trial today and get unlimited access to America`s largest dictionary with: [Last updated June 2021 by the Wex Definitions team]. Some common uses of the term „submission“ in connection with contracts are: You must – there are more than 200,000 words in our free online dictionary, but you are looking for one that is only included in the Merriam-Webster Unabridged dictionary.

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