Sunday, September 23rd 2018

Question

What are block trades?

Interesting Question?   (2)   (5)



Answers (1)

6th Dec 2009 by Amelia Timbers

Block trades are very much what they sound like; a position taken using a large block of stock. For example, block trades occur when an investor buys, sells or shorts with a large, valuable proportion of a firm's stock. Block trades are typically identified by their ability to affect the price of a security by that trade alone. For example, when hedge funds take positions, it is sometimes with millions of millions of dollars at once, which can either hammer down the value of a stock (if they sell or short) or raise it (if they buy). There isn't a specific threshold for how much stock it takes before you've got a block trade, but if you can move the market in one position, you're likely trading in blocks. As a result, block trades are tools of the owners of large amounts of equity such as hedge or mutual funds, institutional investors, or high net worth investors.

Like This Answer?   (0)   (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com



4th Dec 2009 In Stocks 1 Answers | 366 Views
Subjects: block trades,

Answer This Question / Give Your Opinion
What are block trades?


Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *


Give Your Opinion
What is the American Express Rewards program?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What is the American Express Rewards program?
Unanswered Questions in Stocks
Who controls the stock market?
How to buy shares?
What are t shares?
What is a corporate stock issue?
Why invest in stock market?

Answered Questions in Stocks
When do stocks split?
Why stocks go up and down?
Who regulates the stock market?
What is the secondary equity market?
Where are penny stocks traded?
Ask A Question
Get opinions on what you want to know:
Specific to any country?