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Investopedia explains 'Distribution Stock'
It is often necessary for large investment funds to employ traders to watch the market and gradually liquidate significant holdings of securities at the best prices possible. These traders employ a number of techniques to sell distribution stock over time. If a trader is successful, he or she can sell a large position over a period of days, weeks or months without depressing prices or tipping off others to the presence of a large seller in the market.
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