How Most Often Are Shares Allocated in a Dutch Auction

question 72

Multiple Choice

How most often are shares allocated in a Dutch auction when there are more shares demanded than are available at the winning bid price?

• A) Have a random draw to determine which companies will be allowed to buy shares.
• B) Have a random draw to determine which companies will be excluded from buying shares.
• C) Repeat the auction starting from scratch.
• D) Allot each company a proportion of shares relative to the number of shares available and the number of shares demanded at the winning price.
• E) Sell shares to companies with the highest bids and split the remaining shares amongst companies with bids equal to the winning bid price

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Definitions:

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