Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• AUCTION MARKET
  
  Auction market trading, also known as open outcry, is the way the major stock and commodity exchanges, such as the New York Stock Exchange (NYSE) and the Chicago Board of Trade (CBOT), have traditionally handled buying and selling. Buyers compete against buyers, and sellers against sellers, to get the best price. In contrast, the Nasdaq Stock Market (Nasdaq) is described as a negotiated market because the differences between what buyers are offering and sellers are asking are recorded electronically, and the final price is determined by the market maker.
  
  Back