What is an online auction? What is an auction? Electronic, Internet auction What is the meaning of auctions

Auction– one of the forms of bidding; public sale of goods, securities, enterprise property, works of art and other objects, carried out according to pre-established rules.

General principle of auctions is the principle of competition between its participants - buyers. An auction is a competitive type of sale, where the right to buy the goods put up for auction is acquired by the auction participant who offered the highest price for the goods. This participant is called the auction winner. To conduct an auction and recognize it as valid, as a rule, at least two participants are required. In the form of an auction, trade in goods that have individual characteristics and properties is carried out. This excludes the possibility of replacing batches of goods with the same name, since they may have different properties: appearance, quality, taste, etc.

Property or goods that are put up for auction are called lot. A lot can include either one unit of property - an apartment, a painting, a TV, a car, a mobile phone, or a factory, or a group of objects - a batch of coffee, several dozen mobile phones, fish, furs, and so on. Auctions often sell goods with unique properties: works of art, historical rarities, collectibles, antiques, as well as various financial assets: stocks, bonds, etc.

Each lot has individual properties, features, and its own initial (starting) price. This is where the auction begins. The starting price is set either at the request of the seller, or is calculated by specialists based on developed and approved methods.

Method for determining the starting price depends on who owns the property. If the property is state-owned, communal (municipal) or is sold forcibly (seized from the owner by tax authorities or the executive service), the procedure for determining its starting price is fixed at the legislative or regulatory level. If the property is private, then the owner himself can determine the minimum price he plans to receive for his property. It is this price that will be the starting price in this case. A reasonable owner correlates his desire and market prices for the goods that he puts up for auction. Inflated starting prices do not make potential buyers want to take part in the auction and buy the product. However, during auctions, the price of a lot put up for sale can increase many times, and even exceed the market price.

According to their organizational form, auctions are:

- standard(British), where the price only goes up and

- Dutch auctions, at which the price may be reduced to a certain level.

The price increases or decreases gradually, per auction step.

Step– minimum markup or price discount. The step may be regulated by law, for example, during the sale of state property, or determined by the litigant.

Licitator (auctioneer)- This is a specialist who conducts an auction. The auctioneer must know the legislative acts regulating the auction and be fluent in the techniques of conducting auctions. The licitator’s working tool is a hammer, which is used to record the moment of final determination of the auction winner.

According to the purpose of the event there are auctions :

Ordinary;

Charitable – the owner donates property for sale at auction free of charge;

Presentation – to promote a product to the market.

By type of event:

Regular– when the participant confirms the price named by the licitizer by raising a card with a number.

Unspoken– the participant gives an inconspicuous sign, understandable only to the licitator.

Dark– proposals from participants are submitted simultaneously, for example, in a closed envelope.

Auctions can be divided by type of initiative:

Compulsory (sale of property confiscated for certain legal reasons);

Voluntary auctions (held at the initiative of the seller himself).

The following types of auctions are distinguished according to the composition of participants:

Open auction- an auction during which participants see the bids of all their opponents. A classic example is the English open auction. Closed auction- an auction during which participants do not see the bids of their opponents and cannot change their bids. Applications are submitted closed (in envelopes) - each participant directly, without publicly disclosing, informs the auctioneer the size of his bid. An example is privatization auctions in Russia.

First price auction- a closed auction in which the winner is the participant with the highest price and it is this price that must be paid. Typically, sealed auctions are first price auctions.

Second price auction- a closed auction in which the winner is the participant with the highest price, but he must pay the “second price,” that is, the price of his closest competitor. Today it is not widely used.

Double auction- a generalized form of auction, denoting a situation where more than one seller and more than one buyer participate in it, simultaneously reporting their bids to the auctioneer, who then determines the equilibrium price at which transactions are made between sellers and buyers whose bids were no worse than this price.

English auction- the most common type of auction, which provides for buyers to offer step-by-step increasing prices for an item until there is only one auctioneer left - the winner. It is also called an upscaling auction.

Dutch auction- an auction in which the auction begins with a very high price and continues to lower it until a buyer is found who agrees to buy at the announced price. Typically, this type of reverse wholesale auction is used when it is necessary to sell several units of an item at the buyer's price. The Dutch auction is most often used for the sale of securities, flowers and used goods, sales of unfinished construction projects, and the issuance of licenses.

Today they are becoming increasingly popular electronic trading (Internet auction, also known as “online auction”)– open auctions in electronic form for the right to conclude contracts held on the Internet. Unlike conventional auctions, online auctions are conducted not on the basis of personal participation of buyers in them, but remotely. You can participate in them from anywhere in the world and place bids through the auction website or a special computer program. The end date of an online auction, unlike traditional auctions, is set in advance by the seller himself when placing the goods up for auction. In ordinary auctions, the struggle continues as long as the auction rates increase. At the end of the online auction, the buyer must transfer money to the seller by bank transfer (less often in cash, for example, when receiving the goods in person), and the seller must send the goods to the buyer by mail to almost any country in the world. The limits of possible shipment of goods are indicated by the seller himself in advance.

Online auctions are an integral part of e-commerce. The largest and most profitable electronic auction today is the American online eBay, where you can literally buy everything - from airplanes and submarines to autographs of movie stars.

Articles 447-449 of the Civil Code of the Russian Federation are devoted to the procedure for holding auctions. These articles regulate the procedure for conducting auctions in the Russian Federation, while separate regulations may be adopted for various items of auction (types of property, work, services), within the framework that does not contradict the general rules established by the Civil Code of the Russian Federation.

You can become familiar with the rules for participating in electronic trading by studying the legislative framework - Federal Law No. 94-FZ of July 21, 2005 “On placing orders for the supply of goods, performance of work and provision of services for state and municipal needs.”

AUCTION

(from Latin augere - increase). 1) public sale of things to someone who offers a higher price for them. 2) giving works at public auction to the one whose estimate is the lowest.

Dictionary of foreign words included in the Russian language. - Chudinov A.N., 1910 .

AUCTION

[lat. auctio (auctionis)] - a public sale in which the buyer becomes the one who offers the highest price for what is being sold. See LOT.

Dictionary of foreign words. - Komlev N.G., 2006 .

AUCTION

lat. auctio, onis, from augere. increase. Sale by public auction.

Explanation of 25,000 foreign words that have come into use in the Russian language, with the meaning of their roots. - Mikhelson A.D., 1865 .

AUCTION

sale at public auction of the property of a faulty debtor or tax payer by court verdict, sale under the hammer.

A complete dictionary of foreign words that have come into use in the Russian language. - Popov M., 1907 .

AUCTION

sale at public auction of any property by court verdict with a gradual increase in price by those participating in the auction. If after 3 hammer blows no distance follows. premiums, then the item remains with the one who offered more for it than others.

Dictionary of foreign words included in the Russian language. - Pavlenkov F., 1907 .

Auction

(lat. auctio (auctionis)) a sale at public auction in which the goods or property being sold are purchased by the person who offered the highest price for them.

New dictionary of foreign words. - by EdwART,, 2009 .

Auction

auction, m. [ Latin auctio, lit. multiplication] (bargaining). Selling something property or goods at public auction, with the property going to the highest bidder. Sell at auction.

Large dictionary of foreign words. - Publishing House "IDDK", 2007 .

Auction

A, m. (German Auction lat. auctio (auctiōnis) public auction).
A public sale of property in which the highest bidder becomes the buyer. Fur. Sell at auction.
Auctioneer- auction participant.
Auctioneer- the person leading a.
Auction- relating to the auction.

Explanatory dictionary of foreign words by L. P. Krysin. - M: Russian language, 1998 .

Synonyms:

See what "AUCTION" is in other dictionaries:

Alternate sale of real goods based on a competition for buyers. AUCTIONS are held at permanent or pre-designated locations at a traditional or pre-designated location. International AUCTIONS are usually commercial organizations... ... Financial Dictionary

- (from the Latin auctio sale at public auction) a method of selling certain types of goods in the form of a public auction, held in a predetermined place and at a predetermined time with the right of preliminary inspection of goods. Item at auction... ... Economic dictionary

Auction sales, bidding, public bidding; sale, sale under the hammer, sale under the hammer Dictionary of Russian synonyms. auction (public) bidding; sale (or sale) under the hammer (obsolete) Dictionary of synonyms of the Russian language. Practical... ... Synonym dictionary

- (auction) A type of sale of goods when goods are sold to buyers who offer the highest price. Auctions typically sell items for which there are likely to be several competing buyers, such as houses,... Dictionary of business terms

Auction- a sale at public auction, in which the right to purchase the goods or property being sold goes to the economic entity that offers the highest price. Main types of auctions: simple, or English, when publicly announced... ... Economic and mathematical dictionary

- (from the Latin auctio, literally increase, sale at public auction), a method of selling at public auction individually determined goods or lots of goods (lots) previously inspected or tasted by buyers. The product is for sale... Modern encyclopedia

- (Latin auctio from augere to increase) or auction sale is the name given to a public sale with the award of the thing being sold to the one who offers the highest price for it. It is used in cases where it is necessary to immediately sell any goods... Encyclopedia of Brockhaus and Efron

auction- AUCTION, sale, bargaining and bidding, fair... Dictionary-thesaurus of synonyms of Russian speech

Auction- The auction is a good sign. If you hear the voice of an auctioneer calling bids, then you have excellent prospects and success in risky operations. For a businessman, a dream about buying something at an auction foreshadows successful transactions. For… … Large universal dream book

Sometimes rare items, art and collectibles (such as coins, badges or stamps) can be purchased not only in antique or art stores, but also at auctions.

The word "auction" is of Latin origin and is derived from a word that literally means "to increase."

What is an auction: definition

An auction is a public sale of things, the acquisition of which goes to the one who can pay the highest price for them. In addition to antiques, these can also be goods with special properties and qualities. For example, these are vegetables and fruits, furs and fur goods. Horses may also be offered at auctions. There are also used car auctions. This is not the entire list of goods that can be sold at auction. But when talking about auctions, we should not forget the intangible sphere, which can be represented by various types of assets. For example, these could be stocks, bonds, etc.

The meaning of the auction

The main essence of auctions is the convenience of conducting them for both 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, the price and demand for a specific product are formed online. And this price, as a rule, turns out to be the most profitable.

Auction Rules

The auction, as noted, is where the bidding takes place. Thus, an auction is a tool for completing a transaction. And this procedure must be clearly defined and organized according to certain rules. These rules establish the order of the auction (its stages) and the characteristics of behavior at each stage. In the generally accepted classification of stages, there are 4 steps of any auction: preparation, inspection of goods, auction trading, execution of the auction transaction. A special place in the entire procedure is occupied by the third stage - the bidding itself, where by raising the price the auctioneers achieve the sale of the goods.

Types of auctions

There are many reasons for dividing all auctions into groups. Thus, it is possible to distinguish types of auctions only by the goods presented at them. But the classification uses broader categories, such as industries. And in this case, they talk about industry auctions, among which the following can be distinguished: foreign exchange, timber, gold, deposit and others. All types of auctions can be divided into the following types:

On the initiative - forced and voluntary. Forced auctions are most often carried out when valuables are confiscated from the owner, and voluntary auctions are carried out at personal desire.
By the number of participants - open and closed. Whether the auction will be open or closed is explained by the fact that everyone or a conditionally limited circle of people will be present at the auction.

What is an auction? Let's look at this issue in more detail. Participation of enterprises in auctions held in the form of tenders or competitions is one of the forms of trading activity under the Civil Code of the Russian Federation.

The method of selling goods with special properties and values is called commodity auctions (from the Latin - sale by public auction).

As a rule, there are permanent workers who conduct several times a year, usually at a given time. It is also possible to organize a one-time auction for the sale of a specific product or an entire batch of goods. Here, unlike commodity exchanges, periodic trading is usually carried out; they are not year-round sales centers.

What is an auction?

This is a specially organized operating platform on which specific goods are sold through public auction at a predetermined time and specific place.

This is a commercial organization with premises convenient for trading, special equipment and the necessary personnel. Almost all known auctions are organized in the form of joint stock companies.

Often these are entire large corporations that focus on trading a certain type of product. Usually, at their own expense, they buy goods from manufacturers, setting their purchase prices to them, then resell them, making a profit from the difference in purchase and sale prices. Independent manufacturers can also submit their goods for sale at auctions. Corporations, which include joint stock companies, in most cases have their own pre-production production for raw materials (for example, furs, diamonds).

Not everyone knows what an auction is.

Brokerage houses

Some of them are special brokerage houses that take goods for resale on the terms of a certain commission, remuneration in the form of a percentage or a certain share they receive from the sellers. Sellers or buyers do not directly participate in auctions with a brokerage commission.

Organizers can also be organizations for which trading is not the main activity. Such institutions include stock exchanges, museums, permanent exhibitions, art salons, the charter of which must necessarily provide for this type of activity. Online car auctions are very popular these days.

Sellers can be both owners of goods or property (individuals), as well as enterprises and organizations. During the event, everyone present can act as buyers.

How to take part in the auction?

Parties and objects

Since the auction involves the participation of a fairly large number of participants, the following mandatory parties are identified:

owners of goods;
sellers;
organizers;
buyers.

If only one of the parties declares participation, then it is considered invalid.

What do they sell?

At the auction, items for personal use or personal collections with individual characteristics (antiques, paintings), as well as furs, tobacco, cattle, coffee, and flowers can be auctioned. In Russia, the largest fur trade is carried out in St. Petersburg, and Arabian breeding horses - in Moscow and Pyatigorsk. Car auctions are very popular today. You can buy your dream car in any country via the Internet. Depending on the desired brand, you can participate in an online auction in Japan, the USA, Germany, etc. The main thing is not to fall for “gray dealers”. It is imperative to familiarize yourself with the statistics (history) of the sale of the selected lot.

Both large quantities of one type of product and individual specific products can be exhibited. The auction of plots held by municipal authorities will allow you to purchase land at a lower price than on the market. To participate, it is important to collect the entire package of documents, as well as make a 10% deposit. The money will be returned to the losers.

The main difference between an auction and a regular sale is that when purchasing at an auction, you will not be able to make claims against anyone regarding the quality of the goods; neither party is responsible for the quality of the property being sold.

The very meaning of holding an auction and its commercial benefit is that the maximum price for the goods being sold is set through direct competition between buyers present at the same time on the site. The result of the auction is simple - the person who offered the highest price takes the goods.

Order of conduct

This is a complex operation that includes:

preparatory actions;
all manipulations related to bidding;
support of transactions with cash settlements between the organizers and all bidders.

How to apply for an auction? This can be done at any time, starting from the moment the customer publishes the tender notice and strictly until the deadline for submitting bids.

Preparatory operations

At the preparatory stage, proposals received from the owners of the goods are analyzed, they indicate the full name of the product, its brief description, where it can be used, characteristics, quantity and quality of the product, the proposed starting price and the owner’s details. After this, the owners of goods who sent proposals are sent invitations to sign auction agreements.

These same operations include the production of entrance tickets, their sale, checking the presence of signal signs, production and promotion of auction advertising.

At the preparatory stage, premises for storing and preparing goods for sale are selected, they are assessed and examined, and the starting price is determined. Less commonly, a reserve price is set, below which the product cannot be sold.

All declared goods are sorted into batches, which are also called lots.

A typical unit of a product or its standard lot in physical terms is called a lot. A sample must be selected from each lot. A lot may contain one item or several units (for example, sable fur - 30-50 skins). All lots are assigned numbers, according to which they will be put up for auction for sale.

Homogeneous lots following each other form rows - thongs. Each string is separated from others in the catalog by lines.

Creating a directory

Before the opening of the auction itself, to inform buyers about the goods available for sale, a catalog is made, which details the composition and lot numbers. It also publishes the rules for processing transactions at the auction and paying for them.

Regular buyers are required to be sent these catalogs indicating the exact start time of the auction.

Usually, a couple of months in advance, an announcement about an auction is placed in the media with a mandatory indication of all the goods offered, time, conditions, and location.

Positive moves depend on giving all potential buyers an early opportunity to inspect the items to be auctioned. During the inspection, buyers mark the numbers that interest them in the catalogues.

This need for mandatory inspection implies that the rules stipulate that none of the participants bears any responsibility for the quality of the goods sold, therefore claims after the sale are not accepted.

This is important to understand before applying for participation in the auction.

Bargain

Trading at an auction is usually carried out in a special room, which is shaped like an amphitheater. The presenter conducts the auction. Also, his task is to give a brief description of the product.

The auctioneer indicates the starting price, and the buyer, who has expressed a desire to buy the goods, uses a signal sign to indicate a price higher than the starting price.

Each price offered by buyers is repeated, and the presenter names the place where the offer for an increased price came from. After repeating three times, if the next price increase does not follow, the auctioneer knocks with the gavel, saying that the item was bought by the last buyer who offered the highest price.

During the bidding process, he has the right, without giving reasons, to withdraw the lot from auction at the moment and put it up later. Most often, this is done only when it is not possible to reach the approximate value of the selling price.

A land auction is no different from a regular auction.

Registration of transactions

The buyer immediately after the end of the auction formalizes the transaction in accordance with the notes made by the auctioneer's assistant. After payment for the goods, the purchase is recorded in a special statement. A check is issued in 2 copies for the purpose of redemption of the sold goods.

After the auction, revenue is accumulated, which, by agreement of the parties, is divided between the owner of the goods and the organization organizing the auction.

This creates convenience for sellers and buyers, because prices for goods are set in accordance with real demand.

Forms and types of auctions

Depending on their organization, they are divided into:

voluntary - carried out on the initiative of the owners of the goods to obtain the most favorable price;
forced auctions - conducted either by pawn shops or government organizations to sell confiscated or unpaid goods.

By scale of activity:

According to technology

1. Consonants (vowels, with rising prices). First, the minimum price set by the seller is announced. Then, to this price, those wishing to buy make premiums (additions) equal to or greater than the minimum price. The auction rules establish the size of the minimum premiums.

2. Unspoken (mute). Also carried out with an increase in price. Buyers, using conventional signs, agree to raise the price; this all happens after the announcement of the minimum premium. In this case, the auctioneer announces after each increase without indicating the buyer. Thus, the secret of the buyer’s name is preserved (relevant when selling jewelry, paintings).

So, in the article we found out that bidding can be public and silent (unspoken) with an increase in price. There is a Dutch auction with a reduction in price, i.e. the starting price is inflated and lowered until they agree to buy the product. This is how perishable goods are usually traded.

On the stock market

There are also automated electronic auctions. This type is inherent in trading on the stock market. The price is displayed each time on a specialized display. Any change in price, its increase, or decrease must be recorded by the buyer by pressing an electric button, which stops the continuous change of numbers on the display.

When purchasing at all auctions, you must remember that no one is responsible for the quality of the goods, so it is better to take advantage of the provision of all lots for inspection in advance and determine in the catalog which one you want. We've covered what an auction is.

Most uninitiated people believe that an auction is an open auction of various valuable items: collectibles and antiques, examples of high art, precious items. But in reality, the auction bidding procedure can be used to conclude contracts for the sale and purchase of goods for a wide variety of purposes. For example, in international practice, auction sales of coffee, tea, valuable furs, other raw materials and finished goods are common.

The types and concept of an auction in Russia are similar to the concepts generally accepted in world trade. At the same time, Russian laws regulate the list of goods prohibited for sale through auctions. In this regard, entrepreneurs intending to purchase goods subject to duties and taxes through auctions should seek the services of appropriate specialists. These are professional lawyers working in the field of business and taxation.

All over the world there are specialized auctions that sell certain types of goods. Thus, the most famous trading auction houses that have become famous all over the world - Sotheby's and Christie's - specialize in the sale of antiques, jewelry and art objects.

In addition to the concept of “auction trading”, generally accepted in world trade practice, in Russian legislation this term has a legal meaning, regulated by the relevant provisions and articles of regulations.

The Russian Civil Code defines the term “auction” as one of the types of public trading. In accordance with this code, all organizers and participants of auctions are subjects of legal relations with corresponding rights and obligations.

The types and concept of an auction in Russia contain the following provisions that determine its nature:

Open auctions are held in the presence of all persons wishing to take part in them.
Closed auction - only a certain circle of people specially invited by the auction organizers are allowed to participate in it.

The most common form of auctions in our country is open electronic bidding, which will be discussed below. Auction organizers bear certain obligations towards potential buyers. This is a public notice of an auction in the case of open bidding, or an individual invitation in the case of closed sales.

Organizers are also obliged to compensate participants in closed auctions for all damage incurred in the event of sales failure due to the fault of the organizer. On the day of the auction, the organizers must organize the signing of a protocol formalizing the sales results. For the correct legal registration of an auction, the assistance of professional lawyers in the field of licensing will be required.

According to the Civil Code, each auction participant must make a deposit, the monetary amount of which is indicated in the notice of sale. In addition, they sign an official protocol documenting the results of the auction.

The deposit paid is returned to all participants in the event of cancellation of the auction. Also, all participants who do not win the auction have the right to a refund of the deposit.
The concept of “auction” in other legal acts

The term “auction” also appears in the federal law regulating the placement of state and municipal orders for various works, supply of goods, provision of services - the so-called “government procurement”.

In the mentioned law, the term “auction” means holding a competition for the right to conclude an official contract with representatives of state and municipal bodies. In this case, the winner of this competition is usually the person who offers the lowest cost of the services offered.

Auction documentation strictly regulates the application form for a person wishing to take part in this event. The official application must contain a package of supporting documentation, which includes the necessary licenses, approvals and permits to carry out work or provide services. This provision is relevant only in cases where the contract provides for mandatory licensing of the work performed. Non-compliance of the application with the specified standards, as well as other violations in its preparation, may cause refusal of admission to trading.

Persons wishing to organize auction sales or take part in them should take into account that additions and changes are often made to the relevant legislative acts. Thus, since the beginning of 2014, the previous law on public procurement has lost its force due to the adoption of a new Federal Law, according to which new provisions are established in the field of holding competitions among suppliers of goods and services for the needs of the state and municipalities.

The electronic form of auction trading began to actively develop in the Russian Federation simultaneously with the development of computer technologies, in particular, the Internet space. The main feature of online trading is its remote form using specialized websites and electronic platforms.

This form of auction sales is much more convenient than their traditional types - with the direct presence of participants in the room where the auction is held. In order to participate in an electronic auction, potential buyers, as well as organizers, do not need to leave their offices or homes.

In Russia, the types and concept of auctions held using online platforms can be as follows:

Raising trades. In this case, the winner of the competition is the participant who offers the highest price. A similar form is used when concluding ordinary purchase and sale transactions.
Short bidding is when the participant with the lowest price wins the competition. It is used when concluding various contracts, including in the field of government procurement.

Most of the electronic orders placed by government agencies and municipalities, according to the law, take the form of an auction to reduce the offered price.

Persons wishing to take part in online auctions conducted via the Internet should take the most responsible approach to the execution and preparation of official applications. All the nuances and features of this procedure are stipulated in the regulations and tendering regulations.

In accordance with the civil code, not only the organizers, but also the auction participants have certain obligations. Therefore, in order to avoid possible financial risks, save your energy and time, before making a decision to participate in the auction, you should consult with qualified specialists in the field of finance and law.

Types of auctions

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