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Offering Price

 
Investment Dictionary: Offering Price

The price at which publicly issued securities are made available for purchase by the investment bank underwriting the issue. A security's offering price includes the underwriter's fee and any management fees applicable to the issue.

Investopedia Says:
Underwriters analyze numerous factors when attempting to determine a security's offering price. Ideally, an investment bank should accurately assess the value of the securities and the underlying firm, raising funds for the issuing company and selling the securities to investors for a fair offering price.

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Price per share at which a new or secondary distribution of securities is offered for sale to the public; also called Public Offering Price. For instance, if a new issue of XYZ stock is priced at $40 a share, the offering price is $40.

When mutual fund shares are made available to the public, they are sold at Net Asset Value also called the offering price or the Asked Price plus a sales charge, if any. In a No-Load Fund, the offering price is the same as the net asset value. In a Load Fund, the sales charge is added to the net asset value, to arrive at the offering price. See also Offer.

 
 

 

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Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more