auction market

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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
People who do sell at the auction exchange contracts there and then, and will receive the money from the sale 20 working days after the event.
"Basically, about six to eight years ago, we started working a lot with Manheim, a large auction exchange. We were going through an education process about how auctions can help credit unions.
At the end of each auction, the auction exchange rate, the total number of bids received, and the number of successful bids would all be announced and the auction-weighted exchange rate applied to all foreign exchange transactions, including customs duties and interaction purchases by the Reserve Bank, until the next auction date.
When selling on the internet became a reality, Taylor Made was there as part of the Equine Spectrum internet auction exchange, along with Ashford Stud, Eaton Sales, Lane's End Farm and Three Chimneys Farm.
The single-carrier product exchange can be best compared to an insurance auction exchange. The model is primarily operated by one insurer with a strong brand.
This dividend rate serves a dual purpose; it restores the market value of the shares to the auction exchange price (the liquidation preference amount) and represents the cost of preferred equity to the issuer over the next seven weeks.
At the same time, he said he got the Greendale YMCA and Bancroft School together with the city to save Shore Park from closing, proposed building a new handball court at the Great Brook Valley public housing complex and connected the city with an online energy auction exchange to buy cheaper electricity.
A GROUP of five major thoroughbred breeders and sales agencies have joined forces to form Equine Spectrum LLC, an internet auction exchange for the sale of horses and stallion seasons.
World Energy runs electronic auction exchanges for alternative and green energy commodities.
Among the categories are artist and collector reference and research resources, Web site development services, direct-mail sources, licensing outlets and agencies, consumer and business auction exchanges, barter outlets, domain name registration and reseller services, e-commerce services, search engines and indexes, online media publications, payment services, Web site hosting and troubleshooting services, legal and appraisal outlets and virtual fine art marketplaces.
Auction exchanges involve the supplier listing items to be auctioned.