Encyclopedia of Investment Terminology

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Block Trade

A block trade is a stock trade that is large in size, of at least 10,000 shares. When applied to bonds a block trade is a trade of over $200,000 worth of bonds.

Companies may arrange to block trade with other companies, in a way that both parties obtain a better deal. The company that sells the stock can get a better purchase price, while the company acquiring the stock usually gets a discount off the market price.


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