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
  • Gross Receipts
    Let's assume restaurant chain XYZ sold $1 million worth of sales for the year. The...
  • Early Exercise
    The option holder may decide to exercise the option before it reaches maturity by buying...
  • Managed Futures Account
    When you buy a managed futures account, in essence you're hiring an expert to buy, sell...
  • Interchange
    Banks are common users of interchange data because they issue credit cards and debit...
  • U.S. League of Savings Institutions
    Founded in 1892, the U.S. League of Savings Institutions promoted banking standards,...