The issue process where investors submit bids for a new issue and the shares in an IPO are allocated to the highest bidders until the entire issue is sold is called a

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The Dutch auction process involves investors submitting bids for a new issue and the shares are allocated to the highest bidders until the entire issue is sold. This is different from a firm commitment offer where the underwriter agrees to purchase the entire issue and then resell it to investors. A best efforts offer is when the underwriter attempts to sell the securities to the best of their ability, but does not guarantee the sale. A secondary offering is when existing shareholders sell their shares to the public.

The Issue Process Where Investors Submit Bids for a New