Dutch auction, also known as descending price auction, uses a bidding process to find an optimal market price for the stock, the 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 prices, it 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, it is based on a pricing system devised by Nobel prize winning
economist William Vickrey.
Related information about Dutch auction:
- Dutch auction - Wikipedia, the free encyclopedia
A Dutch auction is a type of auction in which the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the ...
- Dutch Auction Sales: Antiques and Used Furniture Wholesale ...
Dutch Auction is one of the largest antique & used furniture auctions in the country. We are a wholesale auction that specializes in supplying auctions, dealers, ...
- Dutch Auction Definition | Investopedia
1. A public offering auction structure in which the price of the offering is set after taking in all bids and determining the highest price at which the total offering can ...
- What Is a Dutch Auction? - Deal Journal - WSJ
Jun 21, 2012 ... Lawmakers have called for a review of the IPO system and cited a Dutch auction as a possible alternative. But what is it?
- Dutch auction - Financial Dictionary - The Free Dictionary
Auction in which the lowest price necessary to sell the entire offering becomes the price at which all securities offered are sold. This technique has been used in ...
- IPO Dutch Auctions Vs. Traditional Allocation - Forbes.com
May 10, 2004 ... In a Dutch auction, a company reveals the maximum amount of shares being sold and sometimes a potential price for those shares. Investors ...
- Dutch Auction
In a Dutch auction, a seller offers up an item for bid at a very high price. The initial price is much higher than the item's value usually and no seller expects to get ...
- What is Dutch auction? definition and meaning
Definition of Dutch auction: Dutch auction, also known as descending price auction, uses a bidding process to find an optimal market price for the stock, the ...