Listen to a Business English Dialogue About Bid wanted
Zoey: James, have you heard of the term “bid wanted” in finance?
James: Yes, Zoey, “bid wanted” refers to a request from an investor or trader to buy a security at a specified price.
Zoey: That’s right. How does the process of “bid wanted” typically work?
James: Well, Zoey, an investor looking to sell a security will submit a bid wanted request to potential buyers, who then submit bids indicating the price they are willing to pay for the security.
Zoey: Got it. What happens after the bids are submitted?
James: The seller will review the bids and select the one that offers the most favorable terms, Zoey. Once a bid is accepted, the transaction is completed, and the security is sold at the agreed-upon price.
Zoey: Makes sense. Are there specific platforms or exchanges where “bid wanted” requests are commonly made?
James: Yes, Zoey, there are specialized platforms and broker-dealers that facilitate the process of “bid wanted” requests, connecting buyers and sellers in the market.
Zoey: Interesting. How does the concept of “bid wanted” relate to market liquidity?
James: Well, Zoey, by allowing sellers to solicit bids from multiple potential buyers, “bid wanted” requests can help improve market liquidity by increasing the number of participants willing to transact in the market.
Zoey: I see. Can you give an example of when someone might use a “bid wanted” request?
James: Sure, Zoey. For example, a bondholder looking to sell a large quantity of bonds may use a “bid wanted” request to efficiently find buyers and secure the best possible price for their investment.
Zoey: That makes sense. Overall, how does “bid wanted” contribute to the efficiency of financial markets?
James: “Bid wanted” requests help facilitate price discovery and promote transparency in the market by allowing buyers and sellers to openly negotiate and transact securities, Zoey. This ultimately contributes to the overall efficiency and functionality of financial markets.