Define competitive bids (security offerings)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter12: The Cost Of Capital
Section: Chapter Questions
Problem 11QTD
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Define competitive bids (security offerings)

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Step 1

Competitive bidding is the procedure where multiple vendors are invited to offer their prices for the particular item or the security which the company is intend to sell.

 

Step 2

It is called competitive bidding as it allows transparency, equal opportunity to all the investors and can ensure that the outcome represent the best possible value that can be obtained.

 

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