In the world of finance, there exists a term known as the cut-off/clearing price. This is the lowest price at which the OFS (Offer for Sale) is subscribed. It is important to note that this price is displayed separately for the Retail and Non Retail Categories. Another term to be familiar with is the Single Clearing Price, which is the price at which shares are allocated to successful bidders in a proportionate basis. This means that all successful bidders are allocated shares at the same price. Lastly, we have the Multiple Clearing Prices, which are prices at which shares are allocated to successful bidders in a price priority methodology. These terms are essential to understanding the mechanics of the stock market and its various processes.
