Glossary entry

English term or phrase:

bid

English answer:

bid price: the highest price a buyer is willing to pay

Added to glossary by Charles Davis
Jul 26, 2011 07:29
12 yrs ago
1 viewer *
English term

bid

English Bus/Financial Investment / Securities
Context:

"The underperformance was predominantly in the XX sectors with losses partially hedged by a more stable bid in the X sector."

"The X sector underperformed the rest of the portfolio with the losses hedged by a bid in the short end of the Fixed Income curve..."
Change log

Aug 7, 2011 02:16: Charles Davis Created KOG entry

Responses

+2
1 hr
Selected

bid price: the highest price a buyer is willing to pay

"A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for a good. It is usually referred to simply as the "bid."

In bid and ask, the bid price stands in contrast to the ask price or "offer", and the difference between the two is called the bid/ask spread."
http://en.wikipedia.org/wiki/Bid_price

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Note added at 3 hrs (2011-07-26 11:17:13 GMT)
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Hi, Bjørnar. It means that the bid price for short-term investments (a reflection of demand for such investments) was sufficiently high to offset or palliate, in part, the losses suffered.

The bid (price) for a given stock or security is a measure of its market value, and will therefore affect the profits or losses of those who hold that stock or security.

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Note added at 3 hrs (2011-07-26 11:22:32 GMT)
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It should also be noted that a high bid in the short end of the Fixed Income curve, which means a relatively high level of demand for short-term investments, will tend to occur at times of uncertainty about longer-term prospects, which is generally the case at the moment.
Note from asker:
Please explain how your definition fits in my context, e.g. "with the losses hedged by a *bid* in the short end of the Fixed Income curve..."
Thanks, if I replace "hedged" with "offset" in my context, your suggestion make sense.
Peer comment(s):

agree Tina Vonhof (X)
6 hrs
Thanks, Tina :)
agree amarpaul : I love the detailed answers :-)
6 hrs
Thank you, amarpaul :)
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4 KudoZ points awarded for this answer.
3 hrs

offer

bid => offer
Peer comment(s):

neutral Jenn Mercer : Bid/Offer often comes down to a U.S/U.K. difference. Neither is "more correct," it just depends on your audience.
4 days
agree with you
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4 hrs

offering

A more stable offering. Apparently the losses in one sector are offset by more substantial offerings in another sector, by the fact that another sector is doing better, there are gains in another sector.

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Note added at 4 hrs (2011-07-26 11:33:40 GMT)
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Clarification: "...by the fact that another sector is doing better, or that there are gains in another sector.

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Note added at 4 hrs (2011-07-26 11:38:35 GMT)
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Ian Mackenzie, in Financial English, defines bid as an offer to buy something at a particular price.

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Note added at 4 hrs (2011-07-26 11:45:02 GMT)
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Your examples refer to "a bid"... I take that to mean not just one bid, but as a sort of collective noun referring to many bids... if you know what I mean.
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