RE:RE:RE:Large secondary offering at 2.53A block trade is just a regular trade, but involving a large number of shares, often from one institution/fund to another, but sometimes from a fund to multiple buyers. The number of shares is usually in the millions - above the normal volume on any given day.
They are not usually available to retail investors, but occasionally if a very large block is being moved, part of it will be made available to retail. They are often a good opportunity with the seller of the block accepting a 5-10% discount from the price due to the large number of shares they need to fill. So the buyer(s) get cheap shares.
The transaction does not involve the company's operations, financesm or valuation at all. There is no money raised or spent by the company and no dilution as no shares are issued.
Mtklip wrote:
can someone explain what a block trade is?