Distribution Stock

Distribution stock refers to a large block of a security which is sold into the market gradually in smaller blocks rather than in a single large block. This is typically done to avoid inundating the market with the security and driving down the average selling price of the securities.

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • distribution stock — A small amount of a specific stock that forms part of a larger block of stock that is sold small amount by small amount so as not to disrupt the stock s market price. Bloomberg Financial Dictionary …   Financial and business terms

  • stock — [ stɔk ] n. m. • h. 1656, rare av. fin XIXe; mot angl. « souche » 1 ♦ Quantité de marchandises en réserve. Stocks d un magasin. Constituer, renouveler un stock. ⇒ approvisionnement, provision, réserve. Avoir un article en stock. Stock disponible …   Encyclopédie Universelle

  • Stock-option — Une stock option (ou stock option) est une forme de rémunération versée par une entreprise généralement cotée en bourse. Il s agit d une option d achat (call) dont l actif sous jacent est l action de l entreprise concernée. Ainsi, ce système… …   Wikipédia en Français

  • Stock-options — Stock option Une stock option (ou stock option) est une forme de rémunération versée par une entreprise généralement cotée en bourse. Il s agit d une option d achat (call) dont l actif sous jacent est l action de l entreprise concernée. Ainsi, ce …   Wikipédia en Français

  • stock — n 1 a: the equipment, materials, or supplies of a business b: a store or supply accumulated; esp: the inventory of the goods of a merchant or manufacturer 2: the ownership element in a corporation usu. divided into shares and represented by… …   Law dictionary

  • stock dividend — See: dividend Category: Business, LLCs & Corporations → Business Accounting, Bookkeeping & Finances Category: Business Cash Flow Problems & Bankruptcy Category: Business, LLCs & Corporations → Business Tax & Deductions Category: Personal Finance… …   Law dictionary

  • Stock Dove — Conservation status Least Concern (IUCN 3.1) …   Wikipedia

  • Stock photography — consists of existing photographs that can be licensed for specific uses. Publishers, advertising agencies, graphic artists, and others use stock photography to fulfill the needs of their creative assignments. A customer who uses stock photography …   Wikipedia

  • Distribution (economics) — Distribution in economics refers to the way total output, income, or wealth is distributed among individuals or among the factors of production (such as labour, land, and capital).[1]. In general theory and the national income and product… …   Wikipedia

  • Distribution (Commerce) — Distribution (management) Le management de la distribution est l organisation de la mise à disposition d un produit ou d un service à un intermédiaire ou un consommateur final. Cette organisation sera différente si ce management est réalisé par… …   Wikipédia en Français

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.