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Double auction system |
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Double auction systemA market consisting of many sellers and many buyers, as opposed to a conventional auction with one market maker and many buyers.Double auction system Similar MatchesAuction rate preferred stock (ARPS)Auction rate preferred stock (ARPS)Floating-rate preferred stock, whose dividend is adjusted every seven weeks through a Dutch auction. Auction marketsAuction marketsMarkets in which the prevailing price is determined through the free interaction of prospective buyers and sellers, as on the floor of the stock exchange. Dutch auctionDutch auctionAuction 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 Treasury auctions. Often used in risk arbitrage. Auction system in which the price of an item (stock) is gradually lowered until it meets a responsive bid (government T-bills) or offer (corporate repurchase) and is sold. In a corporate repurchase, a range of prices is set by the company within which shareholders are invited to tender their shares. The tender offer is open for a specific period of time (i.e., 20 days), and the quantity of stock to be purchased is stated as well, subject to proration if more shares are tendered than can be legally purchased under the stated terms (often an additional amount equal to 20% of outstanding shares can be purchased). The price paid is that at which the amount stated to be purchased can be sold. Compare to double auction system. Dutch auctionDutch auctionAn auction of multiple identical items in which the winning bidder pays the price bid by the lowest successful bidder. For a contrasting system, see 'Yankee auction'. Auction Market Preferred Stock (AMPS)Auction Market Preferred Stock (AMPS)A type of Dutch Auction Preferred Stock (A Merrill Lynch product). Further SuggestionsPeriodic call auctionDouble auction market Walrasian auctioneer Yankee auction Dutch Auction Preferred Stock |
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