Understanding Block Trades

What is a block trade primarily characterized by?

• A single buyer purchasing all shares

• Shares being traded over several days

• A large block of shares being sold

• A small number of shares being traded

What is a humorous analogy used to describe a block trade?

• A poker game

• A monopoly board trade

• A game of chess

• A treasure hunt

Why might a block trade be negotiated at a premium?

• To avoid affecting the stock price in the open market

• To ensure a quick sale

• To prevent the stock price from dropping

• To increase the stock's market value

What is a potential consequence of selling shares in small quantities over time?

• The stock price may double

• The stock price may increase

• The stock price may remain stable

• The stock price may decrease

In what scenario might a block trade occur at a discount?

• When there is high demand for the stock

• When the stock is highly liquid

• When there is an oversupply of shares

• When the stock price is rising