Double auction system

Double auction system

A market consisting of many sellers and many buyers, as opposed to a conventional auction with one market maker and many buyers.

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.
References in periodicals archive ?
For example, one former member of the Task Force suggests that new recruits could be given a more active role in the development of their careers if their firms used a "double auction" system in job assignments.[13] Unlike the traditional system in which a staff accountant is assigned to a particular job without much, if any, participation in the process, a double auction system would match the staff accountant's request for a particular assignment with the partner's (or manager's) request for the particular staff accountant.