| Auctions are those events where properties or | | | | There could be a modification in this type of auction. |
| goods are sold to the highest bidder. Auctions are | | | | The bidders are allotted a specific period to bid. They |
| mostly public events, where bidders make a series of | | | | can roam in a room displaying the items, and write |
| bids and purchase a particular item for a high price. | | | | their bids on an associated sheet of paper. The |
| During auctions, bidders decide the price of an item | | | | bidders are allowed to see bids of other bidders and |
| rather than the seller. It depends on bidders to | | | | can choose a higher price for an item. At the end of |
| decide the amount they would want to pay for a | | | | the allotted time, bidder with the highest bid is the |
| specific item. During an auction, a bid is a proof of a | | | | winner. |
| legal binding. Bidders agree to pay the amount that | | | | Examples of Auctions: |
| they have bid. In a high profile auction, bidders may | | | | Auctions can be of two types either public or private. |
| have to pay a deposit in escrow accounts or give a | | | | Sellers may trade any kind of items in both types of |
| proof that they can pay for those items. | | | | auctions. Some areas where auctions take place are: |
| Types of Auctions: | | | | 1. Antique auction: An antique auction consists of a |
| Different types of auctions take place around the | | | | trade opportunity as well as provides entertainment. |
| world. Below mentioned are some types of auctions: | | | | 2. Collectable auction: In a collectable auction, the |
| 1. English auction: | | | | seller may put up collectables like coins, vintage cars, |
| This is a basic type of auction. In this type, people | | | | luxury, stamps, real estate, and luxury for sale. |
| can see the item and then start bidding. Bidders | | | | 3. Wine auction: In wine auction, bidders can bid for |
| slowly raise the value of their bid until everyone gives | | | | rare wine, which may not be available in retail wine |
| up. The highest bidder is the winner. An auctioneer | | | | shops. |
| manages an auction, keeps records of the on going | | | | 4. Horse auction: Bidders can bid for young horses of |
| bid and decides the winner. Sometimes, the seller will | | | | the best breed. |
| quote a minimum amount for an item to the | | | | 5. Livestock auction: In livestock auction, bidders can |
| auctioneer, below which the auctioneer cannot sell | | | | buy pigs, sheep, cattle, and other livestock. |
| that item. | | | | The other examples of auctions may not be public. |
| 2. Dutch auction: | | | | These auctions are for bidders from corporate levels. |
| In this type, the auctioneer sets a particular price and | | | | Some examples of private auctions are: |
| then gradually lowers the price. People in public will | | | | 1. Timber auction |
| start bidding and later decide which prices are suitable | | | | 2. Spectrum auction |
| for the item. A seller may use this type of auction to | | | | 3. Electricity auction |
| sell large quantities of same products to the public. | | | | 4. Debit auction |
| For instance, a seller may want to sell a large amount | | | | 5. Environmental auction |
| of hay and will thus, decide to sell this hay to people | | | | 6. Auto auction |
| for the same amount, once a reasonable price is | | | | 7. Electronic market auction |
| decided. | | | | 8. Sales of business auction |
| 3. Silent auction: | | | | Bidders in an auction need to examine the items |
| In this type, the bidders in public will present their bids | | | | displayed and decide an appropriate price for an item. |
| in a sealed format. These sealed bids open at the | | | | Thus, auctions help buyers in getting the best deals |
| same time and bidder with the highest bid wins. | | | | and in gaining better profits for sellers. |