Block Trade

Block Trade - A block trade is a absolutely huge number of securities which are being traded, a minimum of at least ten thousand stock shares, or two hundred thousand dollars in bonds. It is only usually investors, institutional, who dare to undertake such large volume trades and it is known that Block Trades can influence the actual market price of any security, depending entirely on the liquidity of the market. Institutional investors usually include investment companies, brokerages, pension funds, investment banks, mutual funds, and endowment funds. These investors are assumed to much more knowledge; therefore, they are able to protect themselves.