Dutch Auction

In trading, the term “Dutch auction” denotes a system in which all securities are sold at the price at which the entire amount of shares making up a public offering can be sold.

Example: A company goes public and sells 100,000 shares in its initial public offering (IPO). An investor is willing to pay 50 francs per share for 20,000 shares, another is willing to pay 48 francs per share for 40,000 shares, and another is ready to buy 30,000 at 48 francs each. However, the highest offer made for the remaining 10,000 shares is just 35 francs. Because this particular IPO was performed as a Dutch auction, all 100,000 shares must be sold at 35 francs – the price at which the transaction can be completed in full.

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  • Up to CHF 100 welcome bonus

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