What is Block Deal ?
Definition of Block Deal, How Block Deal is done, Is Block Deal Good for Stock, Is Block Deal Positive or Negative
Definition: It is a single transaction, of a minimum quantity of 5 lakh shares or a minimum value of Rs 5 crore, between two parties which are mostly institutional players like FII's, DII's, Mutual Fund Houses etc.
The transaction happens through a separate trading window. So they are not Visible in regular markets.
The deals happen in the beginning of trading hours for a time span of 35 minutes. i.e from 9:15 am to 9:50 am.
Generally on this day the stock becomes volatile due to trading in such heavy quantity.
The Block Deal is a Positive or good news for a Stock. But One Should Consider Current Market Price of Share vs Deal Price Per Share.
Comments
Post a Comment