Glossary of Municipal Securities Terms


A bona fide offer to purchase securities at a specified price and yield. In a competitive bid underwriting for a primary offering of municipal securities, a potential underwriter specifies the interest rate(s) for each maturity and the purchase price in its bid to purchase the issue. In the secondary market, a bid may be placed with a broker’s broker, on an alternative trading system or through other venues. The purchase price is usually stated in terms of par, par plus a premium or par minus a discount. See: AWARD; COMPETITIVE SALE. Compare: OFFER; QUALIFIED BID.

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