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How does a Dutch auction work with an IPO?
Home » Investing » Initial Public Offering » How does a Dutch auction work with an IPO?In a Dutch auction, the auctioneer begins by asking for a high price for the IPO. The asking price is gradually lowered until someone willingly accepts the price the auctioneer offers or until the auction arrives at a set minimum price. The bidder then pays the last price announced. A Dutch auction is beneficial when the seller needs to auction IPOs quickly because only one bid is necessary to make a sale.
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