What is an auction?
Sometimes rare things, art objects and collectibles (for example, coins, badges or stamps) can be purchased not only in antique or art salons, but also at auctions.
The word "auction" is of Latin origin and is derived from a word that literally means "increase."
What is an auction: definition
Auction - a public sale of things,the acquisition of which passes to someone who can pay a large price for them. In addition to antiques, it can also be products of special properties and qualities. For example, these are vegetables and fruits, furs and fur products. Horses can also be auctioned. Also there are auctions of used cars. This is not the whole list of goods that can be sold at auction. But, when talking about auctions, do not forget the immaterial sphere, which can be represented by various kinds of assets. For example, it can be shares, bonds, etc.
The meaning of the auction
The main essence of auctions is the convenience of theirholding both for buyers and sellers. It is expressed in the fact that there is no need to search for active bidders - sellers and buyers. At the auction here and now in online mode, the price and the demand for a particular product are formed. And this price, as a rule, is the most profitable.
The auction, as was noted, is the place,where trades are carried out. Thus, the auction is a tool for the transaction. And this procedure should be clearly spelled out and organized according to certain rules. These rules fix the procedure for holding the auction (its stages) and the features of the behavior at each stage. In the generally accepted classification of stages, four steps of any auction are distinguished: preparation, inspection of goods, auction bargaining, execution of the auction transaction. A special place in the whole procedure is the third stage - directly bargaining, where by increasing the price, auctioneers are trying to sell the goods.
Types of auctions
There are many grounds for separationall auctions to groups. So, you can select the types of auctions only for the products presented to them. But the classification uses broader categories, for example, the industry. And in this case they speak of industry auctions, among which we can distinguish the following: currency, timber, gold, deposit, and others. All types of auctions can be conditionally divided into the following types:
- On the initiative - compulsory and voluntary. Forced auctions are most often carried out with the seizure of valuables from the owner, and voluntary - with personal desire.
- The number of participants is open and closed. Whether the auction will be open or closed, is explained by the fact of presence at the auction of all comers or a conditionally limited circle of persons.
You can also benefit from the article Where to sell coins.