Dutch Auction

July 31, 2014  |     |     |   0 Comment

A dutch auction, also referred to as a single price auction, is an auction system in which the seller gradually lowers the price until a responsive bid is met.

Buyers can bid any price they desire and the asset is sold at a single price to buyers whose bid price is at or higher than the auction-set price.

Government treasuries like the U.S. Treasury often employ dutch auctions to sell Treasury notes. Google used a dutch auction to sell shares to investors in its IPO. Google did this to democratize share allocations to institutional investors and get the best price for its shareholders.


Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

    Connect with Kris:
  • linkedin
« Back to Glossary Index

Comments are closed.