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Investments glossary

Auction Market


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(W)e need to ensure our national drug policy reflects the increase of drugs crossing the U.S.-Mexico border, we also need to equip our drug and law enforcement officers with the resources they need to fight back against this epidemic.

— Shelley Moore Capito

In an auction market, buyers enter competitive bids and sellers submit competitive offers at the same time. The price at which a stock trades represents the highest price that a buyer is willing to pay and the lowest price that a seller is willing to accept. Matching bids and offers are then paired together, and the orders are executed. The New York Stock Exchange (NYSE) is an example of an auction market.

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