Sealed bid

sealed bid, containing price and terms, submitted by a prospective underwriter to an issuer, who awards the contract to the bidder with the best price and terms. Many municipalities and virtually all railroads and public utilities use this bid system.

There are various forms of sealed bid auctions. In a first price sealed bid, each buyer submits a price in a sealed envelope and all bids are opened simultaneously, with the highest offer winning.

The Internal Revenue Code requires that seized property be sold by Public Auction or Sealed Bid Auction.

Price and terms submitted in a sealed bid to an issuer by an underwriter. The issuer will award the contract to the underwriting syndicate who bids the best price or most advantageous terms.

A type of auction process in which all bidders simultaneously submit sealed bids to the auctioneer, so that no bidder knows how much the other auction participants have bid. The highest bidder is usually declared the winner of the bidding process.

competitive bid An offering procedure in which underwriters submit sealed bids to the issuer... competitive intelligence Data gathered and used by a firm for the purpose of learning about its competition in a given market.

See also: Acquisitions, Career, Mergers, Expense, Compensation