In a "Dutch auction" the auctioneer typically begins with a high price and continually lowers it until a bidder is willing to buy all the inventory at that price. The method sells goods quickly because only one bid is required to complete a transaction. The name comes from the historical practice used in the Dutch territories in the 17th century for selling high-priced flower bulbs during the Tulip Mania. Many countries, including the U.S., use a Dutch-auction process to sell government securities (treasury bonds, notes, and bills).

A similar process is often used when a company buys back its stock from the open market. In a "modified Dutch auction tender offer" (DATO), a company announces how much stock it wants to buy from shareholders, and within what price range it is willing to do so. Investors willing to participate in this auction can "tender" their shares at a price within the range. Once the auction completes, the company buys the tendered shares at the lowest price it can within the range.