| the price quoted when something is offered for sale, esp. the price per share, as of an investment security or mutual fund being sold to the public. |
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 Commentary
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.
Related Links
IPO Basics Tutorial
The Murky Waters Of The IPO Market
Brokerage Functions: Underwriting And Agency Roles
See also: Going Public, IPO, Prospectus, Public Offering, Underwriting
offering price