Individuals or institutions who own Notes, also known as Note sellers, post Note listings on the Folio Investing Note Trader platform, specifying a starting sale price for the auction of Note listings. Each auction lasts 7 days, although the Note seller can end the auction at any time.
Individuals or institutions who wish to purchase Notes, also known as “Note buyers,” place bids on Note listings at the maximum price they are willing to pay for the Note. An individual bidder’s maximum bid is not revealed unless that maximum is reached during the course of bidding.
At the end of the 7-day auction, the highest bidder is declared the winner. The following business day, also known as the settlement date, the Note buyer pays the Note seller for the transaction, and the Note is transferred from the Note seller to the Note buyer.