Regulators are clamping down on banks’ trading practices.
But one thing banks are still doing is block trading, reports Bloomberg. The outlet says, “[B]lock trades are about buying low and selling high. Banks typically make money by bidding on shares at a discount to the current price and selling them for slightly more. The discount helps protect the firm from a price drop and pays for the risk the bank takes while it locates new buyers.”
To learn more about block trades and how banks are using them, click here.
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