Dutch auction

Dutch auction,

Definition of Dutch auction:

  1. Type of forward auction, in which a seller of a large block of items seeks bids within a specified price range for the whole block. The auction begins with a high starting price which is progressively lowered until the seller finds an acceptable bid. Tulips in Holland, and treasury bonds in the US, are auctioned in this manner.

  2. A Dutch auction also refers to a type of auction in which the price on an item is lowered until it gets a bid. The first bid made is the winning bid and results in a sale, assuming that the price is above the reserve price. This is in contrast to typical options, where the price rises as bidders compete.

  3. A method of selling in which the price is reduced until a buyer is found.

  4. A Dutch auction is a public offering auction structure in which the price of the offering is set after taking in all bids to determine the highest price at which the total offering can be sold. In this type of auction, investors place a bid for the amount they are willing to buy in terms of quantity and price.

How to use Dutch auction in a sentence?

  1. Prices generally start high and drop until a bidder accepts the going price.
  2. In a Dutch Auction, the price with the highest number of bidders is selected as the offering price. This price may not necessarily be the highest or lowest price.
  3. We arent interested in quoting prices over the phone, because that only leads to a Dutch auction.

Meaning of Dutch auction & Dutch auction Definition