Dutch auction in stock market

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How Does a Dutch Auction Work? | The Finance Base

Definition Dutch auction, also known as descending price auction, uses a bidding process to find an optimal market price for the stockthe highest price at which an issuing company can sell all the available shares. An alternative to the traditional negotiated pricing process used by underwriters to set IPO pricesit was most recently employed by Google and is used for US Treasury auctions.

Named after the famous auctions of Dutch tulip bulbs in the 17th century, dutch auction in stock market is based on a pricing system devised by Dutch auction in stock market prize winning economist William Vickrey. Related Terms auction market preferred stock Dutch Auction Preferred Stock auction rate securities ARS stock repurchase plan auction rate stated rate auction preferred stock. Mentioned in these terms.

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