Assume that the auction in Problem 4 is conducted as a dirty auction, and the clearing price is $17. Describe which bidders would receive shares, the price they would pay, and how much of their orders would be filled.

Data From Problem 4

A company goes public by using an auction. The bids are contained in the table below. The firm wants to sell 10 million shares. 

In a traditional offering, describe which bidders would receive shares, the price they would pay, and how much of their orders would be filled.

Transcribed Image Text:

Number Price of Shares ($) (millions) 20 2.5 19 18 4 17 16 8. 15 6.