Auction Power Guide

What is the difference between the two ? I just know OpenIPO is just like Dutch auction but I don’t really know the difference. 10 points for best answer. Thank you.

If a company is using a Dutch auction IPO, potential investors enter their bids for the number of shares they want to purchase as well as the price they are willing to pay. For example, an investor may place a bid for 100 shares at $100 while another investor offers $95 for 500 shares.

Once all the bids are submitted, the allotted placement is assigned to the bidders from the highest bids down, until all of the allotted shares are assigned. However, the price that each bidder pays is based on the lowest price of all the allotted bidders, or essentially the last successful bid. Therefore, even if you bid $100 for your 1,000 shares, if the last successful bid is $80, you will only have to pay $80 for your 1,000 shares.

The U.S. Treasury (and other countries) uses a Dutch auction to sell securities. The Dutch auction also provides an alternative bidding process to IPO pricing. When Google launched its public offering, it relied on a Dutch auction to earn a fair price.

An OpenIPO is essentially the same, a modified Dutch auction (which is usually only for a single item) which allows many shares of an initial public offering to be allocated in an impartial way. All successful bidders pay the same price per share. It is the lowest price at which all shares offered are subscribed to.

There is some confusion over terminology: some financial commentators and some third-party auction sites use the term Dutch auction to refer to second-price auctions, which are totally different from Dutch auctions: in a second-price auction, the winner pays the amount bid either by the lowest winning bidder or by the highest losing bidder.

Read more: http://www.investopedia.com/terms/d/dutchauction.asp#ixzz2F9TaSbdb
http://financial-dictionary.thefreedictionary.com/dutch+auction
http://en.wikipedia.org/wiki/Dutch_auction
http://en.wikipedia.org/wiki/OpenIPO

Patrick Pichette, Susan Wojcicki, Jeff Huber, and Nikesh Arora participate in Google’s Q1 2010 Earnings Call on April 15, 2010.

Duration : 1:12:46

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I am getting sick and tired of all these unmentioned properties in my area. If only the banks would just adjust their prices then their messes could be cleaned up in a responsive fashion.

The lenders out there will have to learn to take the bite. Do not worry they are very creative and will get their money back from you another way.

Many prospective home buyers and investors have been trying to get great deals at auctions. I wonder why banks are sending a great deal of their properties to auction.

Online auction house’s popularity is huge today; go to www.auction-extreme-package.com you can have a mild auction feeling in the comfort of your own home. All it takes is a little addiction to online auctions and before you know it you will be at the live ones.

One of the first auctions I attended was held on the front yard of the property being auctioned. I was pretty mad that they showed up about forty-five minutes late. Within less than five minutes of their arrival the auction was over. It is truly amazing that from start to finish it was over so quickly.

When I go to a real estate auction as an investor I’m looking for a good deal. I know exactly what I am looking for. Also, what price they are worth and what I am willing to pay. Just too many times I just watch people bid them past what they are worth on the open market. On top of that they have to pay the auction house for its time. At that point you could have just made an offer on a similar property for a much lower price.

A fix percentage of the final bidding price is the most common way an auction house gets paid. That amount is added to your bid to make the final purchase price.

When placing your first bid at a real estate auction always remembers that there is additional cost on top of your bid. As rule of thumb I usually calculate about an extra ten percent in additional costs to be safe when calculating my highest bid price.

Today almost everything we read and sign have disclaimers throughout. I particularly like the auction books, go to www.auction-entrepreneur-kit-com they show you so many great deals in the front. When you flip to the rules and regulations section those great things don’t actually exist.

The first few pages of an auction always show you what an amazing deals you could get. In truth those numbers are just there to get your attention and motivate you to actually attend. Do you think that anyone would sell a house $500,000 home for $79,000?

I always thought the when you go to an auction if you bid the highest you win. I wish that was actually true. Many of the auctions have all things these super low starting points. It seems that they always forget to mention that there is a reserve price in the front of there books. Basically those numbers mean nothing and are just a fantasy. The lenders still get the price they want or they don’t have to sell.

Auctions seem to me to become a waste of time and money. I have to waste a full day and show them a considerable deposit just to bid. The actual bidding is supposed to be up to the buyers not the sellers.

PARMOD BANSAL1

I am getting sick and tired of all these unmentioned properties in my area. If only the banks would just adjust their prices then their messes could be cleaned up in a responsive fashion.

The lenders out there will have to learn to take the bite. Do not worry they are very creative and will get their money back from you another way.

Many prospective home buyers and investors have been trying to get great deals at auctions. I wonder why banks are sending a great deal of their properties to auction.

Online auction house’s popularity is huge today; go to www.auction-extreme-package.com you can have a mild auction feeling in the comfort of your own home. All it takes is a little addiction to online auctions and before you know it you will be at the live ones.

One of the first auctions I attended was held on the front yard of the property being auctioned. I was pretty mad that they showed up about forty-five minutes late. Within less than five minutes of their arrival the auction was over. It is truly amazing that from start to finish it was over so quickly.

When I go to a real estate auction as an investor I’m looking for a good deal. I know exactly what I am looking for. Also, what price they are worth and what I am willing to pay. Just too many times I just watch people bid them past what they are worth on the open market. On top of that they have to pay the auction house for its time. At that point you could have just made an offer on a similar property for a much lower price.

A fix percentage of the final bidding price is the most common way an auction house gets paid. That amount is added to your bid to make the final purchase price.

When placing your first bid at a real estate auction always remembers that there is additional cost on top of your bid. As rule of thumb I usually calculate about an extra ten percent in additional costs to be safe when calculating my highest bid price.

Today almost everything we read and sign have disclaimers throughout. I particularly like the auction books, go to www.auction-entrepreneur-kit-com they show you so many great deals in the front. When you flip to the rules and regulations section those great things don’t actually exist.

The first few pages of an auction always show you what an amazing deals you could get. In truth those numbers are just there to get your attention and motivate you to actually attend. Do you think that anyone would sell a house $500,000 home for $79,000?

I always thought the when you go to an auction if you bid the highest you win. I wish that was actually true. Many of the auctions have all things these super low starting points. It seems that they always forget to mention that there is a reserve price in the front of there books. Basically those numbers mean nothing and are just a fantasy. The lenders still get the price they want or they don’t have to sell.

Auctions seem to me to become a waste of time and money. I have to waste a full day and show them a considerable deposit just to bid. The actual bidding is supposed to be up to the buyers not the sellers.

PARMOD BANSAL1

I am getting sick and tired of all these unmentioned properties in my area. If only the banks would just adjust their prices then their messes could be cleaned up in a responsive fashion.

The lenders out there will have to learn to take the bite. Do not worry they are very creative and will get their money back from you another way.

Many prospective home buyers and investors have been trying to get great deals at auctions. I wonder why banks are sending a great deal of their properties to auction.

Online auction house’s popularity is huge today; go to www.auction-extreme-package.com you can have a mild auction feeling in the comfort of your own home. All it takes is a little addiction to online auctions and before you know it you will be at the live ones.

One of the first auctions I attended was held on the front yard of the property being auctioned. I was pretty mad that they showed up about forty-five minutes late. Within less than five minutes of their arrival the auction was over. It is truly amazing that from start to finish it was over so quickly.

When I go to a real estate auction as an investor I’m looking for a good deal. I know exactly what I am looking for. Also, what price they are worth and what I am willing to pay. Just too many times I just watch people bid them past what they are worth on the open market. On top of that they have to pay the auction house for its time. At that point you could have just made an offer on a similar property for a much lower price.

A fix percentage of the final bidding price is the most common way an auction house gets paid. That amount is added to your bid to make the final purchase price.

When placing your first bid at a real estate auction always remembers that there is additional cost on top of your bid. As rule of thumb I usually calculate about an extra ten percent in additional costs to be safe when calculating my highest bid price.

Today almost everything we read and sign have disclaimers throughout. I particularly like the auction books, go to www.auction-entrepreneur-kit-com they show you so many great deals in the front. When you flip to the rules and regulations section those great things don’t actually exist.

The first few pages of an auction always show you what an amazing deals you could get. In truth those numbers are just there to get your attention and motivate you to actually attend. Do you think that anyone would sell a house $500,000 home for $79,000?

I always thought the when you go to an auction if you bid the highest you win. I wish that was actually true. Many of the auctions have all things these super low starting points. It seems that they always forget to mention that there is a reserve price in the front of there books. Basically those numbers mean nothing and are just a fantasy. The lenders still get the price they want or they don’t have to sell.

Auctions seem to me to become a waste of time and money. I have to waste a full day and show them a considerable deposit just to bid. The actual bidding is supposed to be up to the buyers not the sellers.

PARMOD BANSAL1

If you read financial news on a regular basis, or if you are an investor in financial markets, or if you simply know someone who does, you have probably heard something about a crash in the auction rate securities (ARS) market. However, unless you are unusually well-versed in the realm of finance or are a participant in the ailing auction rate market yourself, news about the ARS crisis may not be very informative or interesting, particularly when compared to the arrest of two major ex-Bear Sterns hedge fund managers.

And yet, the two topics are, in many ways, related to one another -and not just because they both concern the financial industry.

What are Auction Rate Securities?

Auction rate securities are long-term bonds with variable interest rates which are reset periodically at auction. At these auctions, a new interest rate, known as the clearing rate, is determined by finding the lowest interest rate at which there are enough buyers to purchase all available shares. Though long-term bonds are often very illiquid, for more details visit to www.auction-professional.com the auction rate system allows transactions to take place every 7, 28, or 35 days, creating an artificially liquid arrangement for investors to take advantage of.

Why Did the Market Fail?

The ARS system is far from flawless. In order for auctions to succeed, there must be enough bids to determine a clearing rate. If there are insufficient bids, for more details visit to www.mining-auction-gold.com the auction fails. To prevent such an occurrence, the broker-dealers who are in charge of running ARS auctions have also historically opted to also bid in their own auctions to provide a buyer for otherwise unwanted shares.

In early 2008, broker-dealers were under great financial pressure. After sustaining heavy losses in the subprime loan market, many were unwilling or unable to support the auction rate securities market. Furthermore, the steady decline in the credit ratings of bond insurers made many broker-dealers nervous about the reliability of the ARS bonds they backed.

In February, dozens of major broker-dealers and investment banks abruptly pulled their funding from ARS auctions, causing a chain reaction of auction failures which shut down the $300 billion market within weeks.

Investor and Regulatory Agency Response

After the auction rate market collapsed, investors were outraged by the loss of liquidity they suffered, and sought to hold investment firms responsible for the promises they made regarding ARS stocks and bonds. Reacting to this public outcry, several government regulatory agencies and state governments also launched investigations into the marketing and business practices of major investment firms, seeking to determine if they had fraudulently sold auction rate securities to investors.

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