What Does Multiple to Bid Mean in Legal Terms?

Q: How do I find the multiple to bid for an auction?

The multiple to bid is specified in the auction announcement issued by the U.S. Department of the Treasury.

Q: Can I bid any amount I want?

No, you must bid in increments defined by the multiple to bid for that auction.

Definition & Meaning

The term "multiple to bid" refers to the minimum additional amount of a security that can be requested in a government auction. This amount is specified in the auction announcement and is crucial for participants who wish to place bids on Treasury securities such as bills, notes, and bonds. Understanding this term is essential for investors looking to participate in these auctions, as it defines the increments in which they can increase their bids.

Table of content

Legal Use & context

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

For instance, if the auction announcement states that the multiple to bid is $1,000, bidders can increase their bids in increments of $1,000. This means if a bidder initially bids $5,000, they can adjust their bid to $6,000, $7,000, and so on, in $1,000 increments.

(hypothetical example) If a bidder wants to bid $10,500 in an auction where the multiple to bid is $500, they would need to adjust their bid to either $10,000 or $11,000, as those are the nearest valid amounts based on the specified multiple.

Comparison with related terms

Term	Definition	Difference
Bid	The amount offered by a participant in an auction.	A bid can be any amount, while a multiple to bid specifies the increments for increasing that bid.
Auction	A public sale in which goods or property are sold to the highest bidder.	Multiple to bid is a specific aspect of the auction process related to bidding increments.

Common misunderstandings

What to do if this term applies to you

If you are planning to participate in a Treasury auction, ensure you understand the multiple to bid for that auction. Review the auction announcement carefully to determine the increments allowed. To streamline the bidding process, consider using US Legal Forms to access templates that can assist you in preparing your bids. If you find the auction process complex, seeking advice from a financial advisor or legal professional may be beneficial.

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Quick facts

Typical multiple to bid amounts vary by auction.
Jurisdiction: U.S. Treasury auctions.
No penalties for misunderstanding, but incorrect bids may be disqualified.

Key takeaways

Frequently asked questions

What is a multiple to bid?

A multiple to bid is the smallest additional amount that can be added to a bid in a Treasury auction.