Competitive Bid Auction


Competitive Bid Auction
   An auction method commonly used to issue government bonds, with underwriters submitting bids for certain amounts. The bonds are then allocated according to the level of demand at rates determined by the level of the bids. The highest bids are allocated their requests in full. The remaining bids are met in descending order until the issuer has sold the required amount of bonds.

Financial and business terms. 2012.

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  • bid — 1 / bid/ vb bid, bid·ding vt: to offer (a price) for payment or acceptance vi: to make a bid: state what one will pay or take in payment a contractor bidding for a job bid·der n bid 2 …   Law dictionary

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