Which type of market allows buyers and sellers to enter competitive prices simultaneously?

The auction market is characterized by the concurrent presence of buyers and sellers who submit competitive bids and offers. This type of market facilitates price discovery through the interaction of supply and demand. In an auction market, transactions occur when buyers agree to purchase securities at the prices offered by sellers, which can lead to efficient and transparent pricing. Participants can see the current bids and ask prices, allowing them to make informed decisions based on the competitive landscape.

This mechanism contrasts with other market types, such as the negotiated market, where transactions are typically agreed upon through direct negotiation between parties, often leading to less transparent pricing structures. In a first market, securities are traded directly from issuers to buyers, usually involving the primary issuance rather than competitive price setting. The second market involves the buying and selling of existing securities, but does not inherently feature the simultaneous competitive pricing dynamics present in auction markets.

Thus, the auction market is the correct answer as it specifically allows for simultaneous competitive pricing among participants.