Legal Definitions - Dutch auction

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:

1. One type of Dutch auction is when an item is offered at a very high price and then the price is lowered until someone buys it. For example, a painting might be offered for $10,000 and then the price is lowered by $1,000 every minute until someone buys it.
2. Another type of Dutch auction is when several identical items are offered at the same time and sold to the highest bidders for the amount of the lowest winning bid. For example, if there are 10 identical chairs, each bidder can bid on one chair and the 10 chairs will be sold to the 10 bidders who bid the lowest amount.
3. In the stock market, a Dutch auction is a method of tendering stock shares. A corporation provides a price range, 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.

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.