Investment dictionary

AUCTION MARKET

Auction Market: translation

A market in which buyers enter competitive bids and sellers enter competitive offers at the same time. The price a stock is traded represents the highest price that a buyer is willing to pay and the lowest price that a seller is willing to sell at. Matching bids and offers are then paired together and the orders are executed.

The New York Stock Exchange (NYSE) is an example of an auction market. Auction markets differ from over the counter where trades are negotiated. For example, 4 buyers want to buy a share of XYZ and make the following bids: $10.00, 10.02, 10.03 and $10.06. Conversely, there are 4 sellers that desire to sell XYZ and they submitted offers to sell their shares at the following prices: $10.06, 10.09, 10.12 and $10.13. In this scenario, the individuals that made bids/offers for XYZ at $10.06 will have their orders executed. All remaining orders will not immediately be executed and the current price of XYZ will then be $10.06.

  1. auction market—auction market translation A system in which financial instruments are bought and sold through trading on an exchange floor by buyers and sellers competing via openoutcry...Financial and business terms
  2. auction market—фр.imarch denchres march aux enchresисп.imercado de subastaаукционный рынок ценных бумагПродажа и приобретение активов через брокеров на фондовых биржах в отличие от внеб...Англо-русский словарь Финансы и долги
  3. auction market—фин. аукционный рынок двойной [двусторонний\] аукцион система организации торгов при которой покупатели и продавцы делают соответствующие предложения одновременно и цена ...Англо-русский экономический словарь