auction system, also called a single price auction, in securities underwriting where the issuer gradually lowers the price until a responsive bid is met. Buyers can bid any price they want, and securities are sold at a single price to all buyers whose bid price is at or higher than the auction-set price. The U.S. Treasury Department sometimes employs the dutch auction technique in auctions of Treasury notes and inflation-indexed securities.
auction system in which the price of an item is gradually lowered until it meets a responsive bid and is sold. U.S. Treasury bills are sold under this system. Contrasting is the two-sided or double-auction system exemplified by the major stock exchanges.
- an auction in which several items, all alike, are being sold at once to the highest bidders. Dutch auctions are popular on eBay and similar online auction services. See eBay.
- an auction in which, instead of asking for bids, the would-be seller gradually lowers the asking price until someone accepts it. This is rarely done on line.
auction system in which the price of an item is gradually lowered until it meets a responsive bid and is sold. U.S. Treasury bills are sold under this system. Contrasting is the two-sided or double auction system exemplified by the major stock exchanges.
a bidding process in which the asking price is lowered gradually until someone places a qualifying bid.
Example: The home was offered in a dutch auction beginning at $150,000. The auctioneer lowered the price gradually in $5,000 increments until a bidder was found willing to pay $120,000. Therefore, the home was sold for $120,000.
