What is the full form of BFO in the Share Market?

The BFO full form in the share market is the Best and Final Offer. This is an important term that is used to negotiate transactions such as mergers and acquisitions. The term is also used when the companies are bidding for large orders.

Features of BFO:

The best and final offer refers to the last and the most favorable proposal that a bidder is willing to submit. It indicates that the bidder has put forth the maximum bid or the best of terms that he can afford. This term is generally used in cases of competitive bidding when multiple parties might be interested in acquiring an asset or security. After submitting the BFO, the negotiating party or the seller would review them, to make a final decision.

Purpose of BFO:

The aim of calling for a BFO is to streamline the negotiation process by prompting all the bidders to present their competitive offers for transparent bidding process. It also helps to remove the ambiguity about the intentions and terms of the bidder. It also helps to eliminate back-and-forth negotiations that might prolong for a long time, making the entire process more efficient.