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competitive bid

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Financial Dictionary

Competitive Bid

A process whereby an underwriter submits a sealed bid to the issuer. The issuer awards the contract to the underwriter with the best price and contract terms.

Investopedia Commentary

This process is used for everything from IPOs to large construction projects.

Related Links

IPO Basics Tutorial

See also: IPO, Negotiated Underwriting, Public Offering Price (POP), Underwriting

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