Dutch Auction

Trading Basics

Dutch Auction

An auction process where the price starts high and is gradually lowed. Very useful when auctioning bond issues.

Other Trading Basics

Commercial Paper

How big companies finance short-term cash flow.

Like bonds but without the coupon, instead, the APR is determined by the discount the agreements are entered into and the length of time to repayment.

For example, a blue chip company might borrow $9.95m dollars today and repay $10m in a month’s time.

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