Stock exchanges, like the New York Stock Exchange and the American Stock Exchange, are auction markets where buyers and sellers meet through a specialist. (See dealer market, Market Maker, specialist)
The system of trading securities through brokers or agents on an exchange such as the New York Stock Exchange. Exchange participants compete for trade executions where the best price wins. For those looking to buy securities, the highest bidder will obtain the securities, while for those looking to sell, the lowest offer receives priority.
A market in which buyers enter competitive bids and sellers enter competitive offers simultaneously. Most stock and bond markets function as an auction market. This means that there is a bid and an ask price for each security. You as an investor can choose to buy or sell at the given bid or ask, or you can establish your own bid or ask price. Think of the stock market as a giant garage sale. If you don't like the price that you see, you can make your own bid for the item. The NYSE is an auction market.