Block

DEFINITION of 'Block'

A large amount of the same security bought or sold by institutional or other large investors. There is no official size designation constituting a block of securities, but a commonly used threshold is more than 10,000 equity shares or more than $200,000 of debt securities.

BREAKING DOWN 'Block'

Blocks of securities are traded in what are called "block trades" and serve to facilitate trades involving institutional investors or other large investors who require such bulk trades to meet their needs.

RELATED TERMS
  1. Block Order

    A signficant order placed for sale or purchase of a large number ...
  2. Block House

    A brokerage firm with the primary focus of locating potential ...
  3. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network ...
  4. Exchange Distribution

    A type of trade made on the floor of a securities exchange in ...
  5. Bagging the Street

    An investor's failure to avoid trading in the stocks that are ...
  6. Block Positioner

    A securities dealer who will take a long or short position in ...
Related Articles
  1. Investing Basics

    What’s The Difference Between Institutional and Non-Institutional Investors?

    Institutional investors are the big guys on the block. Non-institutional investors are everyone else.
  2. Trading Strategies

    What is the Difference Between Institutional Traders and Retail Traders?

    The differences between retail and institutional traders lie in the size of the trade, level of sophistication, and the speed of transactions.
  3. Stock Analysis

    H&R Block Returns To Its True Love

    H&R Block split from its subprime unit, Option One, to refocus on taxes. The move had to be made, but recovery will be slow and painful.
  4. Investing News

    European Phone Carrier Three Blocks Ads

    Three, a mobile carrier in the UK, has implemented mobile ad blocking. Will it affect Google's revenues?
  5. Active Trading

    What's a Marketable Security?

    Marketable securities are financial instruments that can be readily bought and sold in a public market. The key feature is the ease with which it can be sold and converted into cash. Usually, ...
  6. Investing

    Institutional Investors

    Learn more about the advantages that financial institutions enjoy when buying and selling securities.
  7. Stock Analysis

    Did Muddy Waters Jump the Shark?

    The feared Hong Kong short-seller has failed so far in its attack on Chinese chip maker Spreadtrum, writes MoneyShow.com senior editor Igor Greenwald. Has Carson Block finally overreached? Or ...
  8. Stock Analysis

    Angola Oil And Gas Review

    Angola is now one of the largest producers of oil and gas in Africa, and will continue to see production grow as new projects start up operations.
  9. Fundamental Analysis

    Institutional Investors And Fundamentals: What's The Link?

    Big-money sponsorship might make a company look good, but it's not always a reliable gauge of stock quality.
  10. Stock Analysis

    Cote d'Ivoire Oil And Gas Review

    The oil and gas industry is active in Cote d’Ivoire as it explores for resources across the globe.
RELATED FAQS
  1. What's the difference between institutional and non-institutional investors?

    There are a number of differences between institutional investors and non-institutional investors. If you are considering ... Read Answer >>
  2. How does a block chain prevent double-spending of Bitcoins?

    Find out how double-spending is prevented in the Bitcoin server and how transactions are posted and verified on the Bitcoin ... Read Answer >>
  3. What's the difference between primary and secondary capital markets?

    Learn how in the primary capital market, securities are issued for the first time, while in the secondary market, investors ... Read Answer >>
  4. What are some common examples of marketable securities?

    Learn about marketable securities and the most common types of both debt and equity securities, including common stock, bonds ... Read Answer >>
  5. Does working capital include marketable securities?

    Learn how marketable securities such as Treasury bills (T-bills) and commercial papers are part of current assets and the ... Read Answer >>
  6. How can I calculate the expected return of my portfolio?

    Understand the components of the equation used to calculate the expected return of an investor's portfolio. Learn why the ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center