ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A negotiated sale is a process that includes only a limited number of potential buyers, and usually includes one interested party with a high probability to close the transaction. The benefits of a negotiated sale are confidentially, efficiency, and the speed of the sales process.

Detailed explanation-2: -A negotiated sale is when the issuer and a few buyers negotiate the terms of a transaction (municipal bonds) in lieu of competitive bidding. In a negotiated sale, some of the primary points to work out for an issuer are the interest rate, call features and purchase price of the issue.

Detailed explanation-3: -In a negotiated sale, an underwriter is selected to purchase the bonds. The underwriter, in turn, sells the bonds to its investor customers. The terms of the bonds are tailored to meet the demands of the underwriter’s investor clients, as well as the needs of the issuer.

Detailed explanation-4: -Negotiated Purchase: Negotiated purchase is the acquisition of property at a price different from the value that was determined through just compensation.