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 ?
Alcala announced the project at the inauguration of the upgraded livestock auction market in Lemery, Batangas, on July 13.
We expect a robust showing from the auction market during the second quarter of the year.
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.
THE Welsh auction market has shown encouraging growth in the number of commercial and residential property lots both offered and sold at auction, new figures suggest.
THE auction market showed "encouraging growth" during November with the number of homes going under the hammer jumping by 12 per cent, research indicated.
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.
Second, running a very active and liquid secondary market, so that companies in the public space, or those that qualify for listing, benefit from the centralized agency auction market.
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 move towards an unsupported market means it is essential we have a vibrant and dynamic auction market system as an integral part of the livestock sector;
is a software company dedicated to finding solutions for the live auction market.
The Company's immediate focus is the localizing of the used car online auction market.
With respect to Proposal 2, to approve new terms of the Fund's taxable auction market preferred stock to facilitate a rating upgrade, the meeting was adjourned until May 12, 2006, to permit further solicitation of the Auction Market Preferred stockholders.