An auction is a sale in which buyers compete for an asset by placing bids. ... Examples of auctions include livestock markets where farmers buy and sell animals, car auctions, or an auction room at Sotheby's or Christie's where collectors bid on works of art.
An auction market is one where buyers and sellers enter competitive bids simultaneously. The price at which a stock trades represents the highest price that a buyer is willing to pay and the lowest price that a seller is willing to accept.