Question

Harry is selling his rare coin collection through Marshall Auction House. Harry will not sell the collection for less than $300,000 and has the right to withdraw the collection if the $300,000 minimum. What is the term for this kind of auction? a. Option auction. b. Seller's auction. c. Auction with reserve. d. Auction without reserve.

Answer 1

Answer:

C) Auction with reserve.

Explanation:

During an auction with reserve if the auctioneer is not able to reach a minimum price set by the owner of the objects that are being auctioned, then the owner has the right to withdraw his objects. Usually the reserve price is set before the auction takes place but may be changed during the auction depending on the actual bids. The reserve price is commonly not disclosed to the bidders in an auction.