An auction refers to the process where stocks that were not delivered by sellers in time are bought in the open market to meet the buyer’s demand. Auctions help ensure the market’s smooth operation and protect buyers from delivery failures.
An auction is triggered if a seller fails to deliver shares by the settlement deadline, usually due to insufficient holdings or other issues.
The exchange steps in to fulfill the buyer's order through an auction process, purchasing the shares on behalf of the seller to ensure the buyer’s transaction is completed.
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