|
PureBytes Links
Trading Reference Links
|
Actually, the top firms (Goldman, Merrill) have block trading desks which specialise
in executing just this kind of trade, in this kind of size. They will shop the stock
around to institutions before the deal is agreed, usually on a no-names basis. The
institutions get cheap stock, Goldman gets a commission, and the seller gets out of
stock without causing the market to drop like a stone.
Regards
DanG
Norman Phair wrote:
> It is highly unlikely that any firm would be long $18
> million worth of stock to be able to sell it to a buyer.
> In fact I will say it did not happen. A firm also would
> not go short that amount of stock to facilitate a trade.
> My best guess is that
> it was a clean cross. The market maker may have
> participated in some part of the trade in a small
> amount to complete
> the transaction.
>
> Norman E.
>
> Joe Frabosilio wrote:
> >
> > Phil,
> >
> > You maybe right, but the most important part of trading is how are you doing on
> > the trade, not what someone else is doing. How do you think that Market Maker
> > feels now, after selling 50,000 only to go up 100+ points after he sold it.
> > I'm sure his boss will be talking to him, very soon.
> >
> > TradeWell,
> > Joe Frabosilio
> >
> > Phil Lane wrote:
> >
> > > Was looking at the pre-open ticks for NSOL. There was a trade of 50,000
> > > shares at 360. That's $18 million dollars worth of stock. And it was just a
> > > few minutes before a takeover was announced at $532.
> > >
> > > Thoughts?
> > >
> > > rgds phil
|