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    ll receive all the information provided by the company in form of prospectus and other documents.

    After getting prospectus ahead of auction the bidder mu

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    Dutch auction is descending price auction where the bidding process is used to find an optimal market price at which the issuing company can sell its shares. It is in complete contrast to the traditional method of the price range set by the underwriters and people can only bid in between that range.

    How the process works

    Taking a simplified example, I will try to explain how the whole process works. Like the traditional underwriter method the company appoints underwriter for their issue.

    The applicant first has to open an account with the underwriter before the process starts.

    Next the applicant will receive all the information provided by the company in form of prospectus and other documents.

    After getting prospectus ahead of auction the bidder mus

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    t is in complete contrast to the traditional method of the price range set by the underwriters and people can only bid in between that range.

    How the process works

    Taking a simplified example, I will try to explain how the whole process works. Like the traditional underwriter method the company appoints underwriter for their issue.

    The applicant first has to open an account with the underwriter before the process starts.

    Next the applicant will receive all the information provided by the company in form of prospectus and other documents.

    After getting prospectus ahead of auction the bidder mu

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    process works

    Taking a simplified example, I will try to explain how the whole process works. Like the traditional underwriter method the company appoints underwriter for their issue.

    The applicant first has to open an account with the underwriter before the process starts.

    Next the applicant will receive all the information provided by the company in form of prospectus and other documents.

    After getting prospectus ahead of auction the bidder mu

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    oints underwriter for their issue.

    The applicant first has to open an account with the underwriter before the process starts.

    Next the applicant will receive all the information provided by the company in form of prospectus and other documents.

    After getting prospectus ahead of auction the bidder mu

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    ll receive all the information provided by the company in form of prospectus and other documents.

    After getting prospectus ahead of auction the bidder must obtain a unique ID. These ID’s can’t be given once the bidding process starts.

    Once the applicant qualifies, he or she can make a bid for the number of shares they want and at price they want. The price in Dutch auction is not range bound and one can quote above or below the range speculating that the demand may be lower or higher. The important issue here is that all the bids are confidential.

    The final IPO price will be determined once the auction is closed. The underwriters will then calculate the cut off price. The people who bid above the cut off price will get shares.

    How is this Cut–Off Price Determ

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