What is a Block Sale?
A block sale refers to the sale of a large volume of stocks or assets in a single transaction between institutional investors or major buyers. It is typically conducted without significantly impacting the stock market or causing price volatility.
Key Features of a Block Sale:
✅ Large Volume Transactions: Block sales usually involve at least 10,000 shares or more, and for large companies, this number can reach millions.
✅ Executed Through Private Agreements: These transactions often take place outside the stock exchange (Over-the-Counter – OTC) or through negotiated deals.
✅ Conducted Discreetly to Avoid Market Impact: To prevent excessive volatility, investment banks or brokerage firms often facilitate these transactions.
✅ Preferred by Institutional Investors and Large Funds: Hedge funds, investment banks, large corporations, or private equity firms commonly use block sales.
A block sale is a strategic method used for large-scale share transactions, ensuring minimal market disruption. It is a key financial tool for institutional investors, major shareholders, and corporations looking to efficiently manage equity transfers.