Bid Wanted as the name indicates is the invitation of the bids from an investor that holds a certain security and wants to sell the security. In bid wanted scenario the investor or the security holder tells the interested parties that he or she is trying to sell the security and require bids from the interested parties that want to purchase that security. A bud wanted invitation is not a selling or purchasing bind or it may not force the investor or the inviting party to sell the security however it ensures the negotiations among the interested parties. One thing must be kept in mind that a bid wanted is not an agreement between the selling and the purchasing parties.
Bid wanted process is mostly conducted in a scenario when the investor do not wants to sell the securities in solicit and wants to involve a broker in order to conduct the entire process for the seller of the securities. In this process the seller obtains all the bids from the interested parties through the broker. Now it is the task of the brokers to send the bidding invitations personally to the interested parties or to publicize the bid invitation in the entire market. It is also the responsibility of the broker to identify the potential bidders and the parties interested in bidding. Bid wanted may not result in getting the highest price of the security being sold however it will the investor or the seller to achieve high level of privacy and ease in the selling process. This is relatively beneficial for the investors that don’t want to communicate personally while selling the securities or shifting the financial positions.
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