Investopedia describes a modified Dutch auction as a sales technique for selling stock shares where the purchase bid starts high and gradually drops until enough bids are placed to sell all of the available shares at once. Regardless of their individual bids, all bidders pay the same price, which is determined by the highest bid that guarantees the sale of all available shares.Know More
Investopedia explains that an underwriter serves as the auctioneer for the sales and he typically sets the initial price higher than each share's estimated market value. As an example, 100,000 shares are available and the opening bid is set at $25 a share. At $25, the auctioneer does not receive any bids. The price drops to $24, and there are several bids that add up to 50,000 shares. At $23, bids are received for all of the available shares. At $22, bidders are willing to buy 150,000 shares. The final price of the shares is then $23 since this is the highest price that ensures the sale of the entire bidding lot.
According to Investopedia, modified Dutch auctions are employed by the U.S. Treasury to sell securities. Many corporations also choose this method for initial public offerings and stock buybacks. Modified Dutch auctions are an effective method of finding the optimal sale price for a security and reflect the supply and demand of the market.Learn more about Investing
A high-dividend ETF is an exchange-traded fund that seeks to produce a high dividend yield for investors by investing in stocks that consistently pay high dividends. A high-dividend ETF usually contains stocks that have a history of paying above-market dividends or blue-chip stocks that are regarded as extremely safe.Full Answer >
Stocks with high dividend yields may be found by using stock screeners, such as those offered by Yahoo! Finance, Google and MSN or by consulting lists compiled by financial publications. Investors must be cautious when selecting high dividend yield stocks. Stocks with the highest yields, above 5 percent to 10 percent, may have trouble paying dividends. Like all stocks, dividend stocks may decline in value, even if the company makes timely dividend payments.Full Answer >
As of 2014, the all-time high of the Dow Jones Industrial average was 17,350.64, and this occurred on Sept. 17, 2014. The Dow Jones had a record-setting closing of 17,156 that same day.Full Answer >
Owners of U.S. Treasury Series EE savings bonds cannot sell them to other people because savings bonds are non-transferable registered securities, reports TreasuryDirect, a service of the U.S. Department of the Treasury. Owners can redeem electronic savings bonds online and paper savings bonds by post or at various financial institutions.Full Answer >