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 DOT:
- Examples See: Designated order turnaround system dutch auction definition.
- Definition Detachable Warrant:
- Examples the holder to buy a given number of shares of stock at a stipulated price. A detachable warrant is one that may be sold separately from the package it may have originally been issued with (usually a dutch auction explain.
- Definition Dialing For Dollars:
- Examples A term used to describe the practice of cold calling, but which has negative implications as it is frequently applied to salespeople selling speculative or fraudulent investments dutch auction what is.
- Definition Demand Deposits:
- Examples Checking accounts that pay no interest and from which funds can be withdrawn upon demand dutch auction meaning.
- Definition Dependent:
- Examples Acceptance of a capital budgeting project contingent on the acceptance of another project dutch auction abbreviation.
