Selling small amounts of publicly listed shares is easy: They generally sell for the prevailing market price. Big share sales are more complicated, since the very act of selling can drive the price down. To avoid that scenario, banks and brokerages often work with sellers to arrange private “block trades.” A string of recent scandals has underscored the murkier aspects of block trading, and put pressure on regulators to crack down on the misuse of private information ahead of deals.
What is the point of block trades?
It can take several days to liquidate a large stock holding on exchanges, ...
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