competitive bid

competitive bid definition - finance
A bid made by a bank that is a primary dealer in the U.S. Treasury auction. These banks purchase large amounts of securities at the most competitive rate they can get. In contrast, non-
competitive bids are submitted by individual investors who are willing to take whatever price is offered because their purchase is too small to be competitive.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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