Definition
A block trade is a large securities transaction negotiated privately outside public markets, typically involving 10,000+ shares or $200,000+ in value. Block trades are often executed by institutions through brokers to minimize market impact. They're reported after execution to avoid moving prices before completion.
Example
A mutual fund sells a 500,000 share block through a broker who finds an institutional buyer, avoiding public market impact.
FAQ
What is Block Trade?
A large privately negotiated securities transaction.
Why is Block Trade important?
Block Trade helps investors evaluate trading mechanics and make more informed decisions.