Glossary of Municipal Securities Terms


A method of sale chosen by an issuer, requesting underwriters to submit a firm offer to purchase a new issue of municipal securities. The issuer awards the municipal securities to the “winning” underwriter or syndicate presenting a bid complying with the terms of a Notice of Sale that provides the lowest interest rate cost according to stipulated criteria set forth in the Notice of Sale. The underwriting of securities in this manner is also referred to as a “public sale” or “competitive bid.” See: NOTICE OF SALE. Compare: NEGOTIATED SALE.

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