How does auction theory impact in your investment.
Do you take interest in share market and want to invest in share market, and then I am going to tell you about auction theory and how does auction market theory helps you to invest your money in the right one. In an auction market, buyers enter competitive bids, and sellers submit their competitive offers at the same time to the buyers. The price at which a stock trades represents the highest price that a buyer is interested to pay and the lowest price that a seller is willing to accept. Matching bids and offers are then paired together, and the orders are executed. The New York Stock Exchange (NYSE) is one of the examples of an auction market. So friends read this article to the last point and I am sure you will get enough idea about the auction market theory and it will help you to invest your money too. What is auction market theory? The auction market theory is basically based upon ‘fair value’. All free markets seek fair value and is determined by one of the pillars o...