What is the discount rate of stock block trading? What factors are affected?

Many people are very surprised at the discount in the stock market, because if the liquidity of the stock is not particularly good, but they want to sell enough in a short time, the price may be kept very low, but at this time, if someone can collect a lot at once. Then it may be more cost-effective to sell at a discount. Generally speaking, the discount date of bulk transactions is 10%. So what are the factors that affect the discount rate of block trades? Let's have a look.

First, the significance of block trades Many people will ask questions and say why there are block trades. The significance of the existence of block trade mainly includes the following points. One is that industrial capital reduces its shares through block trading, and the other is speculative arbitrage trading between block trading and bidding trading by professional investors. Usually, these two types of transactions will exert some pressure on the stock price. The former is an indirect influence, and the latter is a relatively lagging influence.

The reduction of industrial capital is due to the large amount of equity held by such shareholders and the low cost. If you reduce your holdings in the secondary market, it will be relatively troublesome and have a huge impact on the stock price, so you will choose to transfer by agreement. Arbitrage trading is to use the discount of block trades to make a fuss and get the difference profit.

Second, the volume of transactions Generally speaking, large-scale transactions, whether they are discounts or premiums, are based on the closing price of the day and can be seen in the stock exchange. Generally speaking, discount is not a good trend for the stock itself, and the decline will be relatively large, while premium will have a positive impact on the stock trend. But now many institutions will adopt this kind of speculation, so it is hard to say whether block trading is good or bad for stocks in the secondary market, and it is necessary to analyze the specific situation.

We are willing to trade at a discount and in bulk because we want to sell enough in a short time. At this point, in business transactions, because you may have less bargaining space, the other party will gain more bargaining initiative, so the discount rate will also be affected.

Third, the liquidity of stocks Generally speaking, the better the liquidity of stocks, the less the trading volume of religions in discount transactions. Because the liquidity of the stock market is very good, sellers have more choices in the trading market, and the discount rate at this time will also be affected by the bargaining space of sellers.