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Home > QFINANCE Dictionary > Definition of tender

Definition of

tender

  • 1. Stockholding & Investments

    make offer for investment product at auction to bid for securities at auction. The securities are allocated according to the method adopted by the issuer. In the standard auction style, the investor receives the security at the price they tendered. In a Dutch style auction, the issuer announces a strike price after all the tenders have been examined. This is set at a level where all the issue is sold. Investors who submitted a tender above the strike price just pay the strike price. The Dutch style of auction is increasingly being adopted in the United Kingdom. US Treasury bills are also sold using the Dutch system.

    Related definitions of "tender"

  • 2. General Management

    submit price to do work to offer to undertake work or supply goods at a specific price, usually in response to an invitation to bid for a work contract in competition with other suppliers

  • 3. Operations & Production

    statement outlining acceptable price for job a statement of what a person or company is willing to accept when offering to undertake a major piece of work or supply goods, given in response to request to bid competitively for the work.

    Related definitions of "tender"

    • Also called bid
tender - Related Articles
  • Winning Commercial Tenders

    Best Practice

    A niche consultancy practice in England that specializes in business economics and management received an invitation to tender from a large national telecoms company in Europe. The client was a new one, as was the sector specialism. The time allowed to complete the project was four months
    By Damian Merciar

  • Choosing an External Auditor

    Checklists

    There are many external audit firms to choose from. Public organizations and publicly traded firms must undergo a stringent process of appointing an external auditor that usually involves tenders and bids. The external auditors who are invited to tender are persons or companies with an in

  • To Hedge or Not to Hedge

    Best Practice

    Scenario and risk exposure: Companies that regularly submit tenders for the supply of goods and services are exposed from the date of submitting the tender to the date(s) cash is received. Until an order has been received, this is potential exposure; after that event there is real exposure, and from
    By Steve Robinson

  • Closing the Deal: Public–Private Partnerships (PPP) for Infrastructure

    Viewpoints

    Governments generally run a tender process on public projects in order to demonstrate value for money. By their very nature, these tenders require bidders to invest considerable time preparing sometimes quite complex proposals, so that ministers and officials are able to assess the best value
    By Chris Brown, Joanne Emerson Taqi

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Definitions of ’tender’ and meaning of ’tender’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’tender’ and other financial terms with our online QFINANCE Financial Dictionary.

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