Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Offer

What it is:

An offer is a communication of interest in buying or selling an asset. In other contexts, it might refer to the act of making something available for sale.

How it works (Example):

For example, a retailer might offer a men's watch for $2,000, meaning that the retailer will sell the watch for that amount. However, a customer might come into the store and offer $1,500 for the watch, meaning that the customer is expressing an interest in buying the watch for that amount.

Why it Matters:

Offers make the business world go around, because a fundamental rule of markets in a capitalistic economy is that a product or service is worth only what someone is willing to pay for it. Anybody who has tried to sell an asset in a down market has probably learned this rule the hard way.

Related Terms View All
  • Managed Futures Account
    When you buy a managed futures account, in essence you're hiring an expert to buy, sell...
  • Mortgage Accelerator
    Common in the United Kingdom and Australia, a mortgage accelerator is a checking account...
  • Tax Reform Act of 1993
    The Tax Reform Act of 1993 had several components that received a lot of attention. The...
  • Delivery Price
    Upon the expiration of a futures contract, the underlying commodity is delivered to the...
  • Tax Selling
    Let's assume that John sold two different stocks that he originally bought five years ago...