DUTCH AUCTION – A process by which securities are sold at the highest price at which sufficient bids are received to sell all securities offered. Generally, the securities will be sold at the clearing price established by the Dutch auction to all investors placing bids at or above the clearing price. In the municipal securities market, Dutch auctions may be used as a method of distributing or remarketing variable rate demand obligations. Dutch auctions also are sometimes used in the secondary market to sell out an investor’s large position in a security. See: AUCTION AGENT; AUCTION RATE SECURITIES.