noncompetitive bid

noncompetitive bid definition - finance
Treasury auction bids that come from small investors over the Internet, from a Federal Reserve Bank, or from some commercial banks. When entering their bids, purchasers of noncompetitive bids agree to accept the interest rate offered, which is determined through the bids of the competitive bidders. The competitive bidders are large banks that buy millions of dollars of the Treasury issues at a time.

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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