How Block Trades Work and Why They Arouse Suspicions: QuickTake

Selling one share of stock can be simple: It generally goes for whatever price other shares of the same company are trading for at the moment. Selling large numbers of shares can be complicated, since the very act of selling can drive down the price -- especially if others get wind of a big stake being sold. The U.S. Securities and Exchange Commission and Justice Department are digging into how such “block trades” work, specifically into how bankers work with hedge funds to privately carry out such deals, which have been booming in recent years. A similar case in Japan ...