Dealer vs Auction Market Essay Sample

This essay sample is based on the Dealer vs Auction Market for Singapore students. In the first section, we will be looking at the dealer market where: firstly we shall be discussing the definition of dealer market. Then we will be looking at characteristics of the same.

Moving on, in the second section, we will be discussing the concept of an auction market. Here we will be discussing the definition as well as characteristics of the auction market. Lastly, we will be going through the difference between the dealer market and the auction market.

This is why the essay example of “Dealer vs Auction Market” could be helpful to understand Singapore students. They can download our custom-made essays according to their needs and wants from us if they approach an expert who offers this sort of service in order for them not to have any problems with writing assignments (or anything else).

Introduction- Dealer vs Auction Market Essay

In this sample essay, we will be looking at the topic of “Dealer vs Auction market”. Both of these terms are a huge part of our lives. Even without knowing, you might be participating in one of these markets.

Main body- Dealer vs Auction Market Essay

Dealer market definition

The term “Dealer market” refers to a type of financial market in which numerous dealers present their price of a specific product, service, or securities. Moreover, a dealer could be a seller as well as a buyer. A dealer in this type of market is often referred to as  “market makers”.

For instance, bonds, stock trading, foreign exchange are some examples of the Dealer market. Furthermore, these market makers provide transparency as well as liquidity to the market. This is done by displaying the prices including the bid price and offer price.

Advantages of the dealer market

In this section of the sample essay, we shall be at some of the advantages of a dealer market. Moving on, these are, as mentioned:

• There is no third party involved, the dealer im\ndulge in the process of buying or selling themselves.
• The process is electronic; therefore the transaction is fast and efficient
• There are no brokerage fees involved
• The process of exchange is fairly quick
• Dealer market is sensitive to change in the market.

Auction market defination

An auction market is a type of market in which sellers presents competitive offers while the buyers submit their competitive bids at the same time. Moreover, the trading price of stocks showing the highest price a buyer is willing to offer as well as the lowest offer seller is accepting.

Furthermore, similar bids and offers are put together in order to finalize the orders. NYSE or New York Stock Exchange is an example of an auction market. Moving on, we shall be looking at the advantages of the same in the next sample essay.

Advantages of the auction market

Here we shall be looking at the advantages related to the auction market, These are as mentioned below:

1. One can decide when to sell the property or stock as the auction takes place on a fixed date.
2. The seller has limited liability in this market
3. The auction market allows the use of market strategies for better profits
4. As there are competitive bids one can sell higher the actual price of the product

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Difference between dealer market and auction market

In the last section of the sample essay, we shall be looking at the difference between the dealer market and the auction market. We have already discussed the definition of both of these concepts as well as the advantages related to them.

Moving on, here we shall be looking at the main factors that reflect the difference between these two, i.e. the characteristics. So the characteristics  of the Dealer market and Auction Market are as mentioned below:

Characteristics of the Dealer market

• In the dealer market, dealers are the market markers and they determine the price of bids as well as the price of offers
• The dealer market is quote driven
• Dealer looks after the exchange of securities
• The market is completely electronic
• This type of market is mainly made up of bonds and foreign exchanges

Characteristics of Auction Market

• In the auction market, both buyers and sellers enter the process of auction
• The participants determine the bids and offers
• Trade is only possible if the bid matches with the offer
• The auction market is regulated by a single entity
• It has a centralized trading floor as it is not electronic
• This market is mainly made up of stocks.

Conclusion:

The image of the traditional auction is that it’s a “dealer” and not one to go with if you want your item for less. When companies attempt to sell their product through auctions, they often stumble on many challenges including lack of transparency in pricing because buyers can’t see how much an object costs until after committing themselves; limited selection due to all items going at once while individual retailers offer more choice and a thus better chance at standing out from competitors who only have select quality products available.

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However, if you want to read more essays like this one you can visit our site where you can find many sample essays. For Example Limited partnership regulation in Singapore, Sole proprietorship,  Decision Bias in mergers & acquisitions, Recent Developments in the Maritime Industry, Global Macro Strategy, Financial market vs Financial intermediaries, Market and legal framework, and so on.