Block trade Totally Explained

Everything about Block Trade totally explained

In finance, a block trade is a trade that's usually at least 10,000 shares of a stock or $200,000 of bonds. It can also refer specifically to large trades that occur between institutional parties at a fixed price. For instance, an insurance company may hold a large stake in a company that they'd like to liquidate completely. If this were put into the market as a large sell order, the price would sharply drop --- by definition, the stake was large enough to affect supply and demand. Instead, the first company may arrange for a block trade with another company through an investment bank, benefiting both parties: the selling company gets a more attractive purchase price, while the purchasing company can negotiate a discount off the market rates.
Block trading is a useful measure for analysts in order to assess where institutional investors are pricing a stock. Because in a merger or acquisition, a bid needs to "clear the market" (for example enough shareholders need to tender), it's most useful to see at what prices large "blocks" of stock are trading. These prices imply what the largest shareholders are willing to sell their shares for; thus in block trading analysis, small trades are ignored to avoid skewing the data.

Further Information

Get more info on 'Block Trade'.

External Link Exchanges

Do you know how hard it is to get a link from a large encyclopaedia? Well we're different and will prove it. To get a link from us just add the following HTML to your site on a relevant page:

<a href="http://block_trade.totallyexplained.com">Block trade Totally Explained</a>

Then simply click through this link from your web page. Our crawlers will verify your link, extract the title of your web page and instantly add a link back to it. If you like you can remove the words Totally Explained and embed the link in article text.
As long as your link remains in place, we'll keep our link to you right here. Please play fair - our crawlers are watching. Your site must be closely related to this one's topic. Any kind of spamming, dubious practises or removing the link will result in your link from us being dropped and, potentially, your whole site being banned.