Penalty Bid

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Definition: Penalty Bid

Penalty Bid
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Full Definition of Penalty Bid

A fee charged by some brokerage firms when a client sells Initial Public Offering (IPO) shares immediately after purchasing them. The penalty bid is the obligation of the client’s broker and is intended to discourage them from making shares available to investors whose only interest is to make a quick profit on the IPO.

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https://payrollheaven.com/define/penalty-bid/
Modern Language Association (MLA):
Penalty Bid. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
February 03, 2025 https://payrollheaven.com/define/penalty-bid/.
Chicago Manual of Style (CMS):
Penalty Bid. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/penalty-bid/ (accessed: February 03, 2025).
American Psychological Association (APA):
Penalty Bid. PayrollHeaven.com. Retrieved February 03, 2025
, from PayrollHeaven.com website: https://payrollheaven.com/define/penalty-bid/

Definition Sources

Definitions for Penalty Bid are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th November, 2021 | 0 Views.