Simple English definitions for legal terms
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A Dutch auction is a type of auction where the seller starts with a high price and gradually lowers it until someone buys the item. It can also refer to an auction where multiple identical items are sold to the highest bidders for the price of the lowest winning bid. In securities, it can be a method of tendering stock shares where shareholders indicate how many shares they will sell and at what price, and the corporation buys however many shares it wants at the lowest prices offered.
A Dutch auction is a type of auction where the price of an item is gradually lowered until someone buys it. There are different types of Dutch auctions:
These examples illustrate how a Dutch auction works. In the first example, the price of the painting is gradually lowered until someone buys it. In the second example, the identical chairs are sold to the bidders who bid the lowest amount. In the third example, the corporation buys shares at the lowest prices offered by shareholders.