Competitive Bid Auction

Competitive Bid Auction
   An auction method commonly used to issue government bonds, with underwriters submitting bids for certain amounts. The bonds are then allocated according to the level of demand at rates determined by the level of the bids. The highest bids are allocated their requests in full. The remaining bids are met in descending order until the issuer has sold the required amount of bonds.

Financial and business terms. 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Non-competitive Bid Auction —    An auction which allows bids for quantity rather than price, particularly for government securities. The noncompetitive bidder pays the average price determined by the competitive bidders. These bids allow small investors to participate in the …   Financial and business terms

  • auction — A common method of issuing gilts. Similar to a tender offer. In an auction, investors apply to buy the new gilts being issued, specifying the amount they wish to purchase and the price they are prepared to pay. The new gilts will be issued to… …   Financial and business terms

  • Auction theory — is an applied branch of game theory which deals with how people act in auction markets and researches the game theoretic properties of auction markets. There are many possible designs (or sets of rules) for an auction and typical issues studied… …   Wikipedia

  • Auction — Auctioneer redirects here. For the DC Comics supervillain, see Auctioneer (comics). An auctioneer and her assistants scan the crowd for bidders. An auction is a process of buying and selling goods or services by offering them up for bid, taking… …   Wikipedia

  • bid — 1 / bid/ vb bid, bid·ding vt: to offer (a price) for payment or acceptance vi: to make a bid: state what one will pay or take in payment a contractor bidding for a job bid·der n bid 2 …   Law dictionary

  • auction — auc·tion n: a public sale of property to the highest bidder see also reserve Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. auction …   Law dictionary

  • auction — [n] competitive sale; sale by bid bargain, jam*, sell off; concepts 324,345 …   New thesaurus

  • Auction rate security — An auction rate security (ARS) typically refers to a debt instrument (corporate or municipal bonds) with a long term nominal maturity for which the interest rate is regularly reset through a dutch auction. It could also refer to a preferred stock …   Wikipedia

  • bid — An offer by an intending purchaser to pay a designated price for property which is about to be sold at auction. An offer to perform a contract for work and labor or supplying materials or goods at a specified price. Public contracts are… …   Black's law dictionary

  • bid — An offer by an intending purchaser to pay a designated price for property which is about to be sold at auction. An offer to perform a contract for work and labor or supplying materials or goods at a specified price. Public contracts are… …   Black's law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”