auction market

Auction Market

A security exchange in which buyers make bids and sellers make offers in order to make transactions in a security. On an auction market, the current price for a share in a security is the highest price a buyer is willing to pay and the lowest price a seller is willing to accept. For example, if potential buyers for Security A enter bids of $50, $51, and $52, and potential sellers enter offers of $52, $53, and $54, the current share price is $52. Only the bid/offer for $52 is executed; others must make better bids and offers in order to conduct transactions. The New York Stock Exchange is a major auction market.

auction market

A market in which buyers and sellers gather to transact business through announced bid and ask prices. The organized securities exchanges are examples of auction markets. Compare dealer market, open outcry.

Auction market.

Auction market trading, sometimes known as open outcry, is the way the major exchanges, such as the New York Stock Exchange (NYSE) and the Chicago Mercantile Exchange (CME), have traditionally handled buying and selling.

Brokers acting for buyers compete against each other on the exchange floor, as brokers acting for sellers do, to get the best price. While the trading can be quite intense, it is orderly because the participants adhere to exchange rules.

References in periodicals archive ?
Today, the auction market for real estate has grown to $65 billion-plus in sales and according to a recent study done by the National Association of Realtors, by 2010 a staggering one in every three properties will be sold using the auction method.
The agency auction market model is dependent on buyers and sellers meeting and determining prices based on their meetings -- not always symmetrical or perfect.
This postponement is due to recent market volatility and declines in the market prices of securities in which the fund invests, causing the fund's assets to fall below asset coverage requirements relating to the fund's Auction Market Preferred Shares that are pre-conditions to the payment of common share distributions.
THE auction market showed "encouraging growth" during November with the number of homes going under the hammer jumping by 12 per cent, research indicated.
For many, young and old, the social dimension of attending a livestock auction market is also seen as a good way of networking and updating knowledge about the industry.
Greater positivity was seen in the commercial auction market, with a 10.
NEW YORK -- Fitch Ratings affirms the ratings on the following Western Asset Premier Bond Fund's auction market preferred shares at 'AAA':
This press release contains forward-looking statements (as defined in Securities rules and regulations) that involve risks and uncertainties, including, in particular, statements regarding the growth of the Company's business and opportunities in the real estate auction market.
NYSE:BIF) announced today the issuance of $25 million in Auction Market Preferred Shares, resulting in an increase in the Fund's leverage and total assets.
The new management team consolidates and enhances valuable work experience that will strengthen WWA's position in the international auction market.
After developing an innovative market structure that integrated auction market principles into an advanced screen-based trading system, ISE launched the first fully electronic US options exchange in May 2000.
ENGLISH CHINA CLAYS COMPLETES REDEMPTION OF AUCTION MARKET PREFERREDS