What is an Auction?
Modified on: Tue, 7 Mar, 2017 at 11:29 AM
An auction is resorted to when there is a default in delivery by a broker. An auction is the stock exchange’s mechanism through which, in a settlement, a buyer broker gets shares in the eventuality of default by the selling broker. This default occurs when a short seller fails to square up the position, or a seller fails to deliver shares on time, or a seller delivers bad/wrong shares.
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