A workout quote refers to a nominal price in the over-the-counter (OTC) securities market. This means it is a suggested price that can be negotiated between parties involved in a transaction. The actual price may differ based on various factors, including market conditions and individual negotiations.
Workout quotes are primarily used in financial and securities law, particularly in transactions involving OTC securities. These quotes are relevant in contexts where prices are not set on formal exchanges, allowing for flexibility in negotiations. Users may encounter workout quotes when dealing with investments or securities that are not publicly traded. Legal templates available through US Legal Forms can assist users in drafting agreements related to these transactions.
Here are a couple of examples of abatement:
Example 1: An investor wishes to purchase shares of a small company listed in the OTC market. The workout quote for these shares is $10, but after negotiation, the investor agrees to pay $9.50.
Example 2: A broker provides a workout quote for a bond at $1,000, but the buyer negotiates and ultimately purchases it for $950. (hypothetical example)
| Term | Definition | Differences |
|---|---|---|
| Workout quote | A nominal price subject to negotiation in the OTC market. | Flexible pricing based on negotiation. |
| Market price | The current price at which an asset is bought or sold. | Set by supply and demand, not negotiable. |
| Bid price | The maximum price a buyer is willing to pay for a security. | Represents a specific offer, not a nominal quote. |
If you are considering a transaction involving a workout quote, it is advisable to:
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| Attribute | Details |
|---|---|
| Typical use | Negotiating prices in OTC securities transactions. |
| Legal context | Financial and securities law. |
| Negotiation | Essential for determining the actual price. |
A workout quote is a nominal price in the OTC market that can be negotiated between parties.