Auction and dealership markets: what is the difference?

Pagano, Marco and Röell, Ailsa (1991) Auction and dealership markets: what is the difference? Financial Markets Group Discussion Papers (125). Financial Markets Group, The London School of Economics and Political Science, London, UK.

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Abstract

In the 1980s, the practice of listing stocks in several exchanges has become more frequent, and as a result investors have gained access to alternative trading systems to exchange the same stock. For instance, French, Italian and Spanish "blue chip" stocks can now be traded in their domestic exchanges, organised as auction markets, as well as in the London SEAQ International market, which is a dealership market. The key difference is that while in auction markets all outstanding orders are transacted at a single price via a centralized mechanism, in dealership markets they are placed with individual dealers, who execute them at preset quoted prices.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://www.fmg.ac.uk/
Additional Information:	© 1991 The Authors
Divisions:	Financial Markets Group
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HG Finance
JEL classification:	D - Microeconomics > D4 - Market Structure and Pricing > D44 - Auctions G - Financial Economics > G0 - General > G00 - General
Date Deposited:	17 May 2023 08:54
Last Modified:	11 Dec 2024 19:48
URI:	http://eprints.lse.ac.uk/id/eprint/119185

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