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Google made a Dutch auction in its initial public offering (IPO). Explain how it works (worked).

Google made a Dutch auction in its initial public offering (IPO). Explain how it works (worked).

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Dutch auction is public offering auction where the prices of the IPO is set by taking the bids to determine the highest price at which it can be sold. When a company uses Dutch auction in its IPO, the investors who are interested will enter the bids for the number of shares they would like to buy and the price at which they would like to buy. Once the company receives all the bids from its investors. The allotment starts by assigning to the highest bidder from highest bids down until all of the alloted shares are assigned.

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