Investopedia

Continue to Site »

Block House

Filed Under » ,
Dictionary Says

Definition of 'Block House'

A brokerage firm with the primary focus of locating potential buyers and sellers of large trades. A block house typically deals with institutional clients rather than individual investors, since each transaction represents millions of dollars. Examples of institutional clients include mutual funds and pension funds that assume significant security positions. Because of the nature of block house firms, their trading activity can have a considerable effect on the financial markets. Block trades are generally considered to be those dealing with more than 10,000 shares of stock (excluding penny stocks), or any other trade that involves a high monetary value.
Investopedia Says

Investopedia explains 'Block House'

A brokerage firm is a company that acts as an intermediary between buyers and sellers to facilitate transactions. The buyers and sellers must pay commissions and other transaction fees in exchange for the brokerage firm's assistance in executing any trades. A block house is a type of brokerage firm that deals primarily in large trades, with clients ranging from corporations and banks to insurance firms and academic funds. Some investors and analysts try to follow the money or stay ahead of market trends by watching block trade activity. Institutional investors sometimes trade large blocks of securities directly, to avoid brokerage commissions, in a practice called fourth market.

Articles Of Interest

  1.

    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.

  2. Uncovering The Securities Firm

    Learn about the various departments of a securities firm and the professionals who make it work.

  3. Where's The Market Headed Now?

    Whether up, down or sideways, learn about some of the factors that drive stock market moves.

  4. Introduction To Institutional Investing

    Learn about institutional investing and all of the major players in this field.

  5. Brokers and Online Trading

    How do you find the right broker for your investment needs? Start by reading our broker tutorial.

  6. Quants: The Rocket Scientists Of Wall Street

    Blend math, finance and computer skills to command a high - and well deserved - salary.

  7. Financial Career Options For Professionals

    Find out if spreading your wings to try a new career will make you soar or fall flat.

  8. Women: Invest In Your Financial Literacy

    Learning about money may seem intimidating, but it's not as hard as it looks.

  9. 4 Behavioral Biases And How To Avoid Them

    Here are four common common behavioral biases for traders and how to minimize their effects on your portoflio.

  10. 7 Unconventional Ways Businesses Can Borrow Money

    Find out how your business can get the money it needs - even when the bank says "no".
comments powered by Disqus
Marketplace
Hot Definitions

  1. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  2. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  3. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  4. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  5. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  6. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => Investing [1] => Mutual Funds [2] => SEG (Investors) [3] => SEG (Investors:Instrument-MutualFund) ) time:10ms