Block Transactions

This is a very large buy or sell order placed for securities.  These orders are so large that they would have a large effect on the stock price.  To avoid this effect, the trades are often negotiated through an investment bank.  This matching of buyer and seller enables the buyer and seller of the securities to get a more favorable price.  These trades are most often used by institutional investors, such as hedge funds because they have large numbers of securities.

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