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.
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 ?
The "The US Vehicle Auction Market: Size, Trends & Forecasts (2019-2023)" report has been added to's offering.
The Kuwaiti body tasked with overseeing the country's public-private partnerships (PPP) will soon invite bids for the construction of a 40ha car auction market in Arifan, located in Al-Ahmadi Governorate.
Summary: New Delhi [India], Mar 16 (ANI): The Indian auction market is set to end March with splendor.
DEVELOPMENT OPPORTUNITIES An auction room is usually filled with builders and developers who relish renovation work and there is a huge demand for these types of properties in the auction market. If you have a property due a major re-vamp, or simply just a small refurb, selling by auction could be perfect for you.
CPBigwood senior partner Rory Daly said: "More and more local authorities in the Midlands are choosing to use auctions to raise cash from their property assets, both built and land, and all the ingredients are there to create a thriving auction market regionally.
NABBED: A police officer checks the documents of workers at the car auction market in Shifa on Thursday.
Alcala announced the project at the inauguration of the upgraded livestock auction market in Lemery, Batangas, on July 13.
M2 EQUITYBITES-March 11, 2013-Boulder Total Return Fund proposes redemption of taxable auction market preferred stock(C)2013 M2 COMMUNICATIONS applies no charges to any user of the auction market at any point of the transaction.
Paul Rogers, director of Auction House Tees Valley said, "We are delighted to announce that such a well known and established business as Thirlwells Estate Agents have decided to join us and we look forward to working with them in the weeks and months ahead." Ian McClelland, partner of Thirlwells added: "We have been looking to enter the auction market for some time and the advantage to us of becoming a partner with Auction House is that we maintain our position and relationship with the local market while growing the auction business with the professionalism and diligence that is the guiding principle of Auction House."
"We expect a robust showing from the auction market during the second quarter of the year.