In the stock market, BFO full form is “Best and Final Offer”. This term plays a crucial role in negotiations for transactions such as mergers, acquisitions, and when companies are bidding for large contracts.

Features of BFO

A Best and Final Offer represents the bidder’s last and most advantageous proposal. It signifies that the bidder has presented their highest bid or the best terms they can offer. This term is typically used in competitive bidding situations where multiple parties may be vying to acquire an asset or security. Once the BFO is submitted, the negotiating party or seller reviews it to make a final decision.

Purpose of BFO

The purpose of requesting a BFO is to streamline the negotiation process by encouraging all bidders to present their most competitive offers. This approach promotes a transparent bidding process, clarifies the intentions and terms of each bidder, and reduces the need for extended negotiations, making the overall process more efficient.