Dutch Auction

Term Main definition
Dutch Auction

A method of determining a price per share of stock by a kind of auction. An established number of shares are committed to the highest bidder, then, if any shares remain, to the next highest bidder, and so on until all the shares are committed. In a dutch auction, all buyers would pay the price bid by the buyer of the last share, and the issuing company would issue all shares at the lowest price accepted.