Meaning DUTCH AUCTION: Auction in which the lowest price necessary to sell the entire offering becomes the price at which all securities offered are sold. This technique has been used in Treasury auctions. Often used in risk arbitrage. The price of an item (stock) is gradually lowered until it elicits a responsive bid (government T-bills) or offer (corporate repurchase) and is sold. In a corporate repurchase, the company sets a range of prices within which shareholders are invited to tender their shares. The tender offer is open for a specific period of time (i.e., 20 days), and the quantity of stock to be purchased is stated as well, subject to prorating if more shares are tendered than can be legally purchased under the stated terms (often an additional amount equal to 20% of outstanding shares can be purchased). Compare to double auction system
More terms such as Dutch auction in Dictionary D.
- Definition Day Of Deposit To Day Of Withdrawal Account:
- Examples A bank account that pays interest according to the number of days that the money is actually on deposit dutch auction definition.
- Definition Debt Service Coverage:
- Examples The ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt dutch auction explain.
- Definition Disinvestment:
- Examples A reduction in capital investment reflected by a decrease in capital goods and a company's decision not to replace depleted capital goods dutch auction what is.
- Definition Day Order:
- Examples general equities, request from a customer to either buy or sell stock, that, if not cancelled or executed the day it is placed, expires automatically. All orders are day orders unless otherwise dutch auction meaning.
- Definition Demand Deposits:
- Examples Checking accounts that pay no interest and from which funds can be withdrawn upon demand dutch auction abbreviation.
