An offer is conditional proposal used when a buyer or seller buy a financial instrument or asset from an institution or trader. It is also known as the asking price. It is a precise application made by traders to buy or sell specific service or product under particular conditions.
There are several types of offers, each of which has a different mixture of structures ranging from rules and regulations, pricing requirements, buyers and sellers motives and types of asset.
For example, in debt and equity offering, an offer is a price at which openly allotted securities are presented for buying by the investment bank guaranteeing the issue. A tender offer is an offer to purchase company debt or stock from existing bondholders and stockholders at a stated price during a set period, while in case of homes, potential home buyer frequently offers the highest price to the seller, that they are willing to pay.