• Dutch Auction

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Initial public offering - Dutch auction

1 One version of the Dutch auction is OpenIPO, which is based on an

auction system designed by Nobel Prize-winning economist William

Vickrey

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Initial public offering - Dutch auction

1 In the face of this resistance, the Dutch Auction is still a little used method in U.S

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Initial public offering - Dutch auction

1 Moreover, some forms of the Dutch Auction allow the underwriter to be more active in coordinating bids and even communicating general auction

trends to some bidders during the bidding period

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Initial public offering - Dutch auction

1 A Dutch Auction IPO by WhiteGlove Health, Inc., announced in May 2011 was postponed in September of that year, after several failed attempts to

price

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Online auction business model - Dutch auctions

1 However, with actual on-line Dutch auctions where the price is

descending, it was found that auctions have on average a 30%

higher ending price than first-price auctions with speculation pointing to

bidder impatience or the effect of endogenous entry on the Dutch

auction.

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IPO - Dutch auction

1 Both discriminatory and uniform price or Dutch auctions have been used for IPOs in many countries,

although only uniform price auctions have been used so far in the US

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IPO - Dutch auction

1 In the face of this resistance, the Dutch Auction is still a little used method in U.S

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IPO - Dutch auction

1 Moreover, some forms of the Dutch Auction allow the underwriter to be more active in coordinating bids and even communicating general auction

trends to some bidders during the bidding period

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IPO - Dutch auction

1 An article in the Wall Street Journal cited the reasons as Broader stock-

market volatility and uncertainty about the global economy have

made investors wary of investing in new

stocks.[http://www.statesman.com/news/business/whiteglove-seeks-to-

raise-325-million-in-dutch-auc/nRZg9/ WhiteGlove seeks to raise

$32.5 million in 'Dutch auction' IPO]https://store.theartofservice.com/the-dutch-auction-toolkit.html

Share repurchase - Dutch auction

1 The firm then compiles these responses, creating a supply and demand|demand curve for the stock.To understand the Dutch

auction bidding and outcome from actual shareholder tendering

responses, see Bagwell, Laurie Simon, Dutch Auction Repurchases:

An Analysis of Shareholder Heterogeneity 1992, Journal of

Finance, Volhttps://store.theartofservice.com/the-dutch-auction-toolkit.html

Share repurchase - Dutch auction

1 The first firm to utilize the Dutch auction was Todd Shipyards.Bagwell,

Laurie Simon, Dutch Auction Repurchases: An Analysis of

Shareholder Heterogeneity 1992, Journal of Finance, Vol. 47, No. 1,

page 73.

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List of Dutch inventions and discoveries - Dutch auction (1600s)

1 In addition to cut flower sales in the Netherlands, Dutch auctions have

also been used for perishable commodities such as fish and

tobacco.

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Dutch auction

1 A 'Dutch auction' is a type of auction in which the auctioneer begins with a high asking price which is lowered until some

participant is willing to accept the auctioneer's price, or a predetermined

reservation price|reserve price (the seller's minimum acceptable price) is reached. The

winning participant pays the last announced price. This is also known as a

clock auction or an open-outcry descending-price auction.

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Dutch auction - Auction process

1 In a Dutch auction, the item being sold is initially offered at a very high price, well in excess of the amount

the seller expects to receive

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Dutch auction - Auction process

1 Dutch auctions are a competitive alternative to a traditional auction, in

which bids of increasing value are made until a final selling price is reached, because due to ever-

decreasing bids buyers must act decisively to name their price or risk

losing to a lower offer. http://www.epiqtech.com/auction_sof

tware-Dutch-Auction.htmhttps://store.theartofservice.com/the-dutch-auction-toolkit.html

Dutch auction - A second item auction

1 There is some confusion over terminology. Some financial

commentators and some third-party auction sites use the term Dutch auction to refer to Second price

auction|second-price auctions, which are different from Dutch auctions.

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Dutch auction - A second item auction

1 The price is $20 because that was the lowest successful bid (hence the second price).

Since Bidder A was only awarded 1 item, and his original bid was for 2 items, he has the right to refuse the purchase of that partial amount. As a winning bidder, you have the

right to refuse paying only if you are awarded less than the number of the items you were bidding on. If this were a Dutch Auction, the first bid made wins the item,

regardless of value.

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Dutch auction - Public offerings

1 The United States Department of the Treasury, through the Federal Reserve Bank

of New York (FRBNY), raises funds for the U.S. Government using a Dutch auction. The

FRBNY interacts with primary dealers, including large banks and broker-dealers

who submit bids on behalf of themselves and their clients using the Trading Room

Automated Processing System (TRAPS), and are generally told of winning bids within

fifteen minutes.

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Dutch auction - Public offerings

1 In this example the % at high is 66.66%, meaning only $3 billion of the $4.5 billion at

5.130% will get bonds. Bids will be filled from the lowest yield (highest price) until the

entire $10 billion has been raised. This auction will clear at a yield of 5.130%, and all bidders will pay the same amount. In theory, this feature of the Dutch auction format leads to more aggressive bidding as those who in

this case bid 5.115% will receive the bonds at the higher yield (lower price) of 5.130%.

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Dutch auction - Public offerings

1 [http://www.srectrade.com SRECTrade.com] uses a two-sided

Dutch auction to trade Solar Renewable Energy Credits (SRECs).

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Dutch auction - Dutch auction share repurchases

1 The firm then compiles these responses, creating a supply curve

for the stock.To understand the Dutch auction bidding and outcome from actual shareholder tendering

responses, see Bagwell, Laurie Simon, Dutch Auction Repurchases:

An Analysis of Shareholder Heterogeneity,

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