Offer for Sale

Definition of 'Offer for Sale'

A method of bringing a company to the stockmarket by selling shares in a new issue. The company sponsor offers shares to the public by inviting subscriptions from investors.
(a). Offer for sale by fixed price - the sponsor fixes the price prior to the offer.
(b). Offer for sale by tender - investors state the price they are willing to pay. A strike price is established by the sponsors after recieving all the bids. All investors pay the strike price.
A prospectus containing details of the sale must be printed in a national newspaper.

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