With Dutch auction underwriting:

Question

Quizplus · Accepted Answer

In a Dutch auction underwriting, all successful bidders pay the same price per share, which is the highest price required to sell all the available shares. This means that the selling firm does not receive the maximum possible price for each security sold, as bidders do not have to pay the price they bid but rather the lowest price required to sell all shares. Also, the bidder for the largest quantity may not necessarily receive the first allocation of securities, as all bidders receive at least a portion of the quantity for which they bid.

With Dutch Auction Underwriting