Competitive Bid Option

  

Competitive bid option is basically the TV show Shark Tank as applied to a range of business offerings...from investment banking services for muni bond offerings to freeway construction projects post-damage from Sharknado 4: The Overpassing.

All four or five Sharks like the business presenting their product, and all the Sharks make individual offers to the business owner. The business owner chooses the Shark offering what she feels is the best deal. The winning Shark may sell off a portion of the final deal to one or more of the other Sharks. That's a competitive bid option.

Related or Semi-related Video

Finance: What is the Bid-to-Cover Ratio?11 Views

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Finance allah shmoop what is the bid to cover ratio

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doesn't have to do with how much of the blanket

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your loved one leaves you at night No that's bed

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to cover ratio Totally different We're talking about a sentiment

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index as it relates to us treasury bill auctions and

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the overall health of the u s economy As you

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hopefully remember us treasury securities air sold at a discount

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to par pay no interest along the way and then

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just pay full par at the end That is a

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bid for a six month t bill might be a

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nine hundred eighty eight dollars and twenty cents for a

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piece of paper paying a thousand bucks in six months

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We'll have the government come up with that nine hundred

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eighty eight twenty number Was it from an act of

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congress a mandate from the prez of bill no it

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was set by bids from investors hoping to be ableto

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buy that grand payable in six months for as cheap

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a price as possible But once that bid number is

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set well then the government decides it wants to sell

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me x dollars worth of that particular security and the

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price is set The government hopes that there are buyers

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or bitters for that security paying some in two ish

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percent and change an annualized returns Well if there are

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tons of bidders at two percent it signals to the

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government that next week well it can probably offer just

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one point eight percent for that same paper all else

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being equal and you know then they can raise as

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much money as they want at that point Well if

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there are scant few bidders well then it signals to

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the g men that they might have to raise the

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rent they pay on the money they're willing to borrow

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here A two point once before do two point three

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percent or something like that So the bid teo cover

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ratio is the number of bids made divided by the

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number of bids accepted or covered and it's a carefully

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tracked number because it conveys a lot of market intelligence

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about investor demand for us paper and you know generally

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how healthy things are So to recap bid to cover

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ratio bed to cover ratio on this would be a 00:02:08.09 --> [endTime] bed couch ratio

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What is spread (bid-ask)? The bid-ask spread compares how much a buyer will pay to how much the seller will sell for. The asking price is what the...

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