What is a block store?

Block shop or block order is an order for a very large amount of securities. In general, trades with 10,000 or more shares are considered block trades, as well as bond trades with a value of more than $ 200,000. Individual players are rarely involved in block stores because they are so large; Institutions such as universities and banks are usually forces for such shops. Since the high volume of trading can affect the market value of shares, block stores must be carried out carefully. Block House retains employees who are qualified when handling block stores, and the company can also have special relations with other traders and companies to facilitate block trading. In general, the customer plants a block order with the block house staff and believes employees to get the best solution. Put the employees, do not want to run a sudden increase or reduce the stock of block stores. Generally the brokers in contact brokersCH BLOCK HOUSE, who specialize in the type of traded security, and experts fulfill the order through several retailers. The block trade can also be carried out directly between companies, an arrangement of how it could be when the company will connect with another.

Once the company has purchased a block of securities, it can hang on them or sell them again in the hope of making a profit in a block store. Some shares analysts use the shopping and sales activities of major investors to measure market health and the value of stocks. If an institutional investor orders a block store, other smaller investors can follow when trying to ride a wave of interest and rising prices that can generate block trade.

Block shops tend to have high liquidity, Jaaning that they can easily be converted into cash assets if they are properly treated. Poor handling, however, may lead to a drop lIkvidity. Struckbrokers specializing in blocks trading focus on a number of questions that are unique to blocking shops such as trading intimately so that other investors do not know about block store until it has already been completed and trading to maintain high value.