Offering (Issue) Price
-The price
at which publicly issued securities are made available for purchase by the
investment bank underwriting the issue. A security's offering price
includes the underwriter's fee and any management fees applicable to the issue.
Underwriters analyze numerous factors when attempting to determine a security's offering price. Ideally, an investment bank should; accurately assess the value of the securities and the underlying firm, raise funds for the issuing company and sell the securities to investors for a fair offering price.
