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

Price Talk

What it is:

Price talk refers to discussions about the price of a pending initial public offering (IPO) or upcoming bond issue

How it works (Example):

Price talk is usually debate and discussion about what a fair price is for certain new securities. During the process, the issuer's investment bank often "sets" the price talk, meaning that it essentially strongly suggests a price range for the issue. Other interested parties participate in the discussions as well.

Why it Matters:

Price talk can be very insightful because the participants often compare the issue price to benchmarks, similar issues and previous offerings. The discussions help investors make informed decisions about what the price of the issue should be.