A Block Trade is a large, privately negotiated securities transaction. Block trades are arranged away from public markets to lessen the effect on the security's price. They are usually carried out by hedge funds and institutional investors via investment banks and other intermediaries, though high-net-worth accredited investors may also be eligible to participate.Block trades have a few key benefits. First, they allow for a large volume of shares to be traded without affecting the market price. This is important for institutional investors who often want to buy or sell large amounts of stock without moving the price. Second, block trades are usually done at a fixed price, so there is no need to worry about the price
fluctuating during the trade. Finally, block trades are often done "off-market", meaning they are not subject to the same rules and regulations as regular trades on public exchanges.If you're an institutional investor looking to trade a large block of stock, a block trade may be the right option for you.
