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IT-AT™
Example Auction Process
The IT-AT™ auction process follow that of a standard Duch Auction. The highest bidders win the shares at the price they offer.
Take for example the following share holders submitting their shares for sale sorted on a first-in first-out basis:
| Share Holder |
# Shares |
Ask Price | Date / Time Submitted |
| Jon | 250 | $ 15.00 | 28/May/2001 1:45 |
| Pat | 300 | $ 10.00 | 28/May/2001 2:01 |
| Mel | 900 | $ 14.00 | 28/May/2001 9:02 |
| Dan | 450 | $ 12.75 | 28/May/2001 10:04 |
| Jan | 1200 | $ 10.00 | 29/May/2001 2:02 |
| Jill | 290 | $ 12.50 | 29/May/2001 16:30 |
| Dave | 500 | $ 10.00 | 29/May/2001 18:02 |
| Sue | 700 | $ 12.80 | 30/May/2001 11:04 |
| Joe | 300 | $ 14.80 | 30/May/2001 11:20 |
The following chart shows a plot of share sale submissions showing price on the vertical axis and volume on the horizontal axis sorted in time of submission:
All the stock offered for sale must be submitted before the auction begins. As soon as the auction begins buyers can start submitting bids. Buyers can increase their bids at any time, and may submit more than one bid and share volume combination.
In our example the following buyers submit bids:
| Bids to Buy | # Shares | Bid Price | Date / Time Submitted |
| Peter | 200 | $ 15.00 | 1/Jun/2001 9:01 |
| Will | 400 | $ 10.00 | 1/Jun/2001 12:01 |
| Sal | 800 | $ 13.75 | 1/Jun/2001 21:01 |
| Steven | 450 | $ 12.75 | 1/Jun/2001 22:45 |
| John | 1000 | $ 10.00 | 2/Jun/2001 13:54 |
| Sam | 290 | $ 12.50 | 2/Jun/2001 15:32 |
| Phil | 900 | $ 10.00 | 2/Jun/2001 18:42 |
| Kate | 700 | $ 12.80 | 2/Jun/2001 22:01 |
| Alice | 300 | $ 14.80 | 2/Jun/2001 23:48 |
The following chart shows a plot of share buy submissions showing price on the vertical axis and volume on the horizontal axis sorted in time of submission:
At the end of the auction the bids are then resorted according to first the maximum bid price then time. The date you submit your bid is important as earlier bids will be put ahead of bids at the same price:
| Bids to Buy | # Shares | Bid Price | Date / Time Submitted |
| Peter | 200 | $ 15.00 | 1/Jun/2001 9:01 |
| Alice | 300 | $ 14.80 | 2/Jun/2001 23:48 |
| Sal | 800 | $ 13.75 | 1/Jun/2001 21:01 |
| Kate | 700 | $ 12.80 | 2/Jun/2001 22:01 |
| Steven | 450 | $ 12.75 | 1/Jun/2001 22:45 |
| Sam | 290 | $ 12.50 | 2/Jun/2001 15:32 |
| John | 1000 | $ 10.00 | 2/Jun/2001 13:54 |
| Phil | 900 | $ 10.00 | 2/Jun/2001 18:42 |
| Will | 400 | $ 10.00 | 1/Jun/2001 12:01 |
The following chart shows a plot of share buy submissions showing price on the vertical axis and volume on the horizontal axis sorted by price of bid:
IT-AT™ applies the bids against the stock for sale against the first stock offered for sale. The date stock is submitted for sale on the auction is thus important.
The following chart shows a plot applying first the high bids against the first submitted stock sales:
- Peter's Bid of $15.00 for 200 shares is applied against Jon's offer of 250 shares at $15. Jon gets paid $15.00 for 200 shares. There are no other bids of $15 or more so Jon's 50 remaining shares are not sold.
- Next Alice's bid of $14.80 for 300 shares is applied against the next stock offer that with a minimum price under $14.80. Pat's stock offer of 300 shares at $10.00 is next inline - Pat gets paid $14.80 for all 300 shares.
- Sal's bid of $13.75 for 800 shares is then applied to the next stock offer inline, Mel's asking price of $14.00 is too high. Mel's stock sale is carried through to the next auction.
- Sal's bid next gets applied against the next offers inline; Dan and Jan's stock offers. Dan gets paid $13.75 for all his 450 shares and Jan gets the remaining 350 shares from Sal's bid at $13.75.
- Kate's bid or $12.80 for 700 shares is next applied to the shares for sale, Jan's offer is still not used up so all of Kate's 700 shares are sold to Jan for $12.80.
- Steven's bid of 12.75 for 450 shares is next applied, 150 of Jan's shares remain and are sold for 12.75. The balance of Steven's 300 shares are applied to the next inline, Jill's 290 shares. Jill gets paid 12.75 for all 290 shares she offered. The remaining ten shares in Steven's bid are applied to the next inline, Dave. Dave gets paid $12.75 for ten shares.
- Sam's bid of $12.50 for 290 shares is next applied. Dave, next in line has an asking price of $10.00 so all 290 shares are applied against Dave at $12.75.
- John's bid of $10.00 for 1,000 shares is next applied. The remaining 200 shares offered by David at $10.00 are applied to John's bid at $10.00 each. There are no further shares offered for sale at or below $10.00 so the outstanding 800 shares from John bid for are carried through to the next auction.
- Phil and Will's bids are not met and are carried through to the next auction.
Summary stock sales from auction:
| Share Holder | Paid out in Auction | # Shares |
Ask Price |
Date / Time Submitted |
| Jon | $15 for 200 shares 50 shares not sold, carried through to next auction | 250 |
$ 15.00 |
28/May/2001 1:45 |
| Pat | $14.80 for 300 shares | 300 |
$ 10.00 |
28/May/2001 2:01 |
| Mel | no sold carried to next auction | 900 |
$ 14.00 |
28/May/2001 9:02 |
| Dan | $13.75 for all 450 shares | 450 |
$ 12.75 |
28/May/2001 10:04 |
| Jan | $13.75 for 350 shares; $12.80 for 700 shares and $12.75 for 150 shares | 1200 |
$ 10.00 |
29/May/2001 2:02 |
| Jill | $12.75 for all 290 shares | 290 |
$ 12.50 |
29/May/2001 16:30 |
| Dave | $12.75 for 10 shares; $12.50 for 290 shares and $10 for 200 shares | 500 |
$ 10.00 |
29/May/2001 18:02 |
| Sue | no sold carried to next auction | 700 |
$ 12.80 |
30/May/2001 11:04 |
| Joe | no sold carried to next auction | 300 |
$ 14.80 |
30/May/2001 11:20 |
Summary of stock bids in auction:
| Bids to Buy | Shares Bought | # Shares | Bid Price | Date / Time Submitted |
| Peter | 200 shares at $15.00 | 200 | $ 15.00 | 1/Jun/2001 9:01 |
| Alice | 300 shares at $14.80 | 300 | $ 14.80 | 2/Jun/2001 23:48 |
| Sal | 800 shares at $13.75 | 800 | $ 13.75 | 1/Jun/2001 21:01 |
| Kate | 700 shares at $12.80 | 700 | $ 12.80 | 2/Jun/2001 22:01 |
| Steven | 450 shares at $12.75 | 450 | $ 12.75 | 1/Jun/2001 22:45 |
| Sam | 290 shares at $12.50 | 290 | $ 12.50 | 2/Jun/2001 15:32 |
| John | 200 shares at $10.00 800 @ $10 carried to next auction | 1000 | $ 10.00 | 2/Jun/2001 13:54 |
| Phil | 900 @ $10.00 carried to next auction | 900 | $ 10.00 | 2/Jun/2001 18:42 |
| Will | 400 @ $10.00 carried to next auction | 400 | $ 10.00 | 1/Jun/2001 12:01 |
Conclusion:
Buyers get the shares at the price they are prepared to pay as long as there are remaining sellers willing to sell at that price.
Sellers get paid what buyers are prepared to pay in the order at which their bids are submitted. If a seller does not sell their shares at auction, the offer will automatically be carried through to the next auction and placed at the beginning of the line in date order.
InfoTelesys capital stock sold to raise money for the company is always applied first inline for stock sales.
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