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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

Auction Market

Definition:

The New York Stock Exchange is an auction market, which means that the prices on that market happen during a bidding process where matching offers get matched. Buyers and sellers buy and sell at the same time, so in essence, two transactions are happening at once.

The opposite of this sort of the market is the over-the-counter (OTC) market, where dealers are the ones holding the cards and ultimately determining price.