auctions


when an asset is offered for sale and there are many interested buyers, the asset is frequently sold by auction.

the auction date and time is generally announced several weeks in advance or more

at the appointed time, the auctioneer briefly describes the item, and calls for an opening bid.

buyers then call out higher bids, with a gap of several seconds to several minutes between each bid

when there appears to be no higher bidding, the auctioneer calls for any higher bids, for several 

	minutes, and then calls the asset 'sold' to the highest bidder


there may be a reserve price, in which case if the bid does not reach the reserve price, the asset 

	is not sold, however the bidder may negotiate with the seller and possibly settle on a price




	bids		auctioneer			bidder		


			any starting bid
	300,000						A
	320,000						B
	340,000						A
	360,000						C
			bid size reduced to $5,000
	365,000						A
	370,000						B
	371,000						A
			sold to higheSt bidder


