• An auction market is a market where buyers and sellers make competitive bids at the same time.
  • The price at which a share trades is the highest price a buyer is willing to pay and the lowest price a seller is willing to accept.
  • Double auction - this is when the bid price and the ask price are the same, and the trade is at this price.
  • Auction markets do not involve direct negotiations between individual buyers and sellers, while negotiations occur for OTC transactions.
  • The US Treasury conducts auctions open to the public and large investment organizations to fund certain government financial transactions.