The squad has decided it’s time to take a group vacay to Belize. There’s just one problem: none of us have the money to actually go to Belize.
But we’ve come up with a foolproof plan. We’re going to buy a bunch of knock-off designer purses, set up an auction, and then sell them like they’re the real thing. We’ll have a few ringers in the audience to drive up the bid prices, and then, once all the purses are sold, we’ll totally have more than enough dough to make our vacation dreams come true. Great idea, right?
Uh…maybe not. What we’ve just described is called a “mock auction,” and it’s absolutely, 100% illegal. We can’t just buy a bunch of low-quality or off-brand stuff, pretend it’s the real thing, and then auction it off to unsuspecting buyers. Even if it wasn’t illegal, it’s still totally uncool. Nobody likes being scammed, even if the profits go to something we consider a very worthy cause: a sun-soaked vacation on the Caribbean Sea.
Mauction.
Related or Semi-related Video
Finance: What is an Auction Market?13 Views
Finance a la shmoop... what is an auction market.. next up on the block [Man speaking on stage]
we've got stock in the company comb Depot....
okay yeah so the New York
Stock Exchange is an auction market and you have no idea how much caffeine I had [Man holding a monster energy drink]
to have to get that right which means that the prices on the new york stock
exchange happen during a bidding process we're matching offers get you know [People frantically rushing to bid for stocks]
matched... buyers and sellers buy and sell at the
same time so in essence two transactions are happening at once the opposite of
this sort of market is the over the counter or OTC market where dealers are
the ones holding all the cards and they ultimately determine the price by [Dealer with the cards]
creating a spread from where they're willing to sell your shares and what
price they'll pay to buy your shares but in an OTC market well you don't get to [Dogs running side by side]
feel like you're watching the last leg of a greyhound race so you don't get all
my caffeinated auction talk there which is kind of cool we like that, right..right?
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