A secondary market offering that is similar to a rights issue in which a shareholder is given the opportunity to purchase stock at a price that is lower than the current market price.
(Consideration is the act of doing something or promising to do something that a person is not legally required to do, or the forbearance or the promise to forbear from doing something that he or she has the legal right to do.). An offer is a communication that gives the listener the power to conclude a contract.  28 adj If something such as an offer or job is open, it is available for someone to accept or apply for. v-link ADJ The offer will remain open until further notice. → opening 6 29 If you do something in the open, you do it out of doors rather than in a house or other building. Open is also an adjective., adj. ...an open window... , A door had been forced open. 2 verb If you open something such as a bottle, box, parcel, or envelope, you move, remove, or cut part of it so you can take out what is inside. BREAKING DOWN 'Open Offer'. An open offer differs from a rights issue in that investors are unable to sell the stocks that they purchase under the open offer to other parties. Some investors see a secondary market offering as bad news because it causes stock dilution and may signal that the stock is overvalued. RELATED TERMS. A secondary market offering that is similar to a rights issue in which a shareholder is given the opportunity to purchase stock at a price that is lower than the current market price. The purpose of such an offer is to raise cash for the company. Next Up. An open offer is similar to a rights issue, in that shareholders are entitled to buy newly issued shares in proportion to their existing holdings. Unlike a rights issue, an open offer does not allow shareholders to sell the right to subscribe to shares — the shareholders have an entitlement rather than a tradeable right to subscribe to new shares. For this reason an open offer is sometimes called an entitlement issue. Any entitlement that is not taken up is simply allowed to laps, or the shares are sold to another party with no compensation to the original shareholder for the loss in value of their holding that results from the dilution the new issue cause URL to this page: http://www.investorwords.com/12220/open_offer.html. Copyright © 2015 by WebFinance, Inc. ALL RIGHTS RESERVED. Reproduction of all or part of this glossary, in any format, without the written consent of WebFinance, Inc. is prohibited. Popular 'Stocks' Terms. 1  equity. 2  common stock. 3  mutual fund. 4  preferred stock. 5  stock. 6  debt/equity ratio. 7  security. 8  P/E ratio. 9  market capitalization. 10  book value. DEFINITION of 'Offer'. 1. When one party expresses interest to buy or sell an asset from another party. The offering price is often the highest the buyer will pay to purchase an asset, and the lowest that the seller will accept. 2. The act of making an asset available for sale. 2. Firms can offer a variety of things to the investment community. For example, when a firm has an equity or debt offering, it will offer shares or bonds to investors. Similarly, the company may offer rights to its shareholders, which allow them to purchase more stock. Firm Offer. Under Article 2 of the Uniform Commercial Code, in a sale of goods, if the seller is a merchant under the definition of a merchant in Article 2, and in a signed writing promises to keep an offer open, this creates a firm offer which is irrevocable.  DEFINITION of 'Open Offer'. A secondary market offering that is similar to a rights issue in which a shareholder is given the opportunity to purchase stock at a price that is lower than the current market price. The purpose of such an offer is to raise cash for the company. Next Up. Opportunity for shareholders to purchase stock at a discounted price from a secondary market offering. Stock purchased during an open offer may not be sold to other investors. This practice is frequently used to raise money for the organization. Popular 'Stocks' Terms. 1  equity. 2  common stock. 3  mutual fund. 4  preferred stock. 5  stock. 6  debt/equity ratio. 7  security. 8  P/E ratio. 9  market capitalization. 10  book value.
http://legal-dictionary.thefreedictionary.com/offer http://dictionary.reverso.net/english-cobuild/open%20to%20offers http://www.investopedia.com/terms/o/openoffer.asp http://moneyterms.co.uk/open-offer/ http://www.investorwords.com/12220/open_offer.html http://www.investopedia.com/terms/o/offer.asp https://www.law.cornell.edu/wex/firm_offer http://www.investopedia.com/terms/o/openoffer.asp http://www.investorwords.com/12220/open_offer.html
what is open offer means