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Why did the auctions initially fail?

April 26, 2017auctions fail initially

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Why did the auctions initially fail?

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Auctions initially failed because of liquidity issues (i.e., there were more shares offered for sale than there were bids to buy shares). Liquidity problems seem to have developed because some broker-dealers who customarily placed bids for their own accounts in auctions stopped this practice. However, broker-dealers are not, and never have been, legally required to bid for their own accounts in an auction.