Auction and dealership markets: what is the difference?

Marco Pagano and Ailsa Röell

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

JEL-codes: D44 G00 (search for similar items in EconPapers)
Pages: 14 pages
Date: 1991-09-01
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http://eprints.lse.ac.uk/119185/ Open access version. (application/pdf)

Related works:
Journal Article: Auction and dealership markets: What is the difference? (1992)
Working Paper: Auction and Dealership Markets: What is the Difference? (1991)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:119185

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