Dutch auction

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Dutch auction

an auction in which the price is lowered by stages until a buyer is found
References in periodicals archive ?
P.A.M., of Tontitown, announced last week that it was holding a Dutch auction to repurchase the shares for a price between $19 and $21.
(1991) and Persons (1994) suggest Dutch auctions are more effective takeover deterrents than fixed-price tender offers as Dutch auctions make targets more expensive to outside bidders.
The sample consists of 141 Dutch auctions and 85 fixed-price tender offers.
The Administration has proposed using reverse auctions to purchase mortgage-related securities from financial institutions, which are similar to the multiple-unit Dutch auctions that the Treasury uses to sell government securities.
Specific rules and operation details for reverse Dutch auctions used by governments and private firms have varied.
Fannie Mae (NYSE: FNM), the largest US home funding company, is planning to sell USD5bn benchmark bills on Wednesday in a Dutch auction, reports Reuters.
Dutch auctions used with IPOs, which are also called uniform price auctions, work somewhat in the opposite direction.
A Dutch auction is a descending-price auction and bidding starts at a high price.
In a Dutch Auction each holiday lot starts at the maximum price and at regular intervals the price drops until it reaches the reserve price.
So he turned to a little-used financial technique called a Dutch auction.
Prior research provides evidence that Dutch auctions permit firms to repurchase their stock more cheaply than fixed-price tenders.
We find striking differences between the post-repurchase announcement insider trading patterns of the fixed price tender offer firms and those of the Dutch auction tender offer firms.