Chandelier Bid

AAA

DEFINITION of 'Chandelier Bid'

A bid that is announced by an auctioneer during an auction that has not been signaled by a participant, but has rather been fabricated by the auctioneer in order to create the appearance of greater demand for the item at auction.

INVESTOPEDIA EXPLAINS 'Chandelier Bid'

Chandelier bids are so named because the auctioneer announcing the bids may point to the ceiling or other areas of the room rather than at actual bidders. This gives the illusion that bids are being made.

Chandelier bids are not illegal, but can be frowned upon by bidders who don’t like the idea of competing against imaginary competitors. They are most likely to be used when the seller has placed a reserve price on the item, with the auctioneer having leeway at increasing the “bid” until the reserve price is reached.

RELATED TERMS
  1. Bidding War

    A situation where two or more buyers are so interested in an ...
  2. Auction

    A system where potential buyers place competitive bids on assets ...
  3. Gallerist

    The owner or operator of an art gallery. Gallerists buy and sell ...
  4. Lyon & Turnbull

    An auction house established in Edinburgh, Scotland, in 1826. ...
  5. Phillips

    A New York-based auction house specializing in the sale of art ...
  6. Original Print

    A work of art that is created using a master image carved into ...
Related Articles
  1. Personal Finance

    5 Most Expensive Paintings Ever Sold

    These are the most expensive paintings ever.
  2. Personal Finance

    5 Expensive Pieces Of Memorabilia You Can Buy

    These movie and TV props are some of the coolest, and most expensive, you can buy.
  3. Personal Finance

    The Most Expensive Bottles Of Alcohol

    Here's a rundown of the most expensive bottles of wine, scotch and beer.
  4. Retirement

    5 Investments You Can't Hold In An IRA/Qualified Plan

    The list of prohibited investment vehicles is short, but it's important to know what is off limits.
  5. Investing

    Five Alternative Investments For Main Street

    FOX Business Network anchor Deirdre Bolton explains the alternative investments investors ask her about the most.
  6. Investing Basics

    Fine Art Can Be A Fine Investment

    The art market is fickle, and there are no guarantees of profitability, but with a little legwork and forethought you can fill your home with images that may prove worthy investments down the ...
  7. Options & Futures

    Investing In Fine Wine

    If you fail to uncork profits in this market, you can always toast your loss.
  8. Savings

    How To Cash In Your Heirlooms

    Learn how to make the most money from your family treasures without getting ripped off.
  9. Personal Finance

    Why Are People Hoarding Coins?

    Meet the new class of investor: the coin hoarder.
  10. Personal Finance

    Should You Pawn Your Valuables?

    Pawnshops provide easy access to short-term loans, but they aren't the only option.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center