In auction terminology, what does "no reserve" mean?

In auction terminology, "no reserve" means that there is no minimum price set for the auction, allowing the item to be sold regardless of the final bid amount. This setup encourages bidders to participate actively, as they know that the item will sell at any bid that is placed. The absence of a reserve price signifies the seller’s commitment to selling the item regardless of its perceived value, creating a potentially competitive bidding environment. This approach can lead to unexpected selling prices, as bidders may be willing to bid higher than they initially planned without the concern of reaching a minimum threshold.

The other options suggest different meanings that do not align with the definition of "no reserve." For instance, while one option implies that any bid would be accepted, it does not capture the idea of having no minimum price. Another option suggests a fixed selling price, which is incompatible with the concept of a competitive bidding process inherent in auctions. The option regarding the auctioneer not charging a fee is unrelated to the concept of reserve pricing and distracts from the essence of what "no reserve" fundamentally conveys.