exchange distribution

Exchange Distribution

A type of trade made on the floor of a securities exchange in which a large block of shares traded actually represents many buy and sell orders that have been pooled and executed as one transaction.

Notes:

Exchange distributions are recorded on the ticker tape after the trade has taken place.

See also: Exchange, Ticker Tape

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Exchange distribution

A sale on an exchange floor of a large block of stock in a single transaction. A broker bunches a large number of buy orders and sells the block all at once. The broker receives a special commission from the seller.

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exchange distribution

The sale of a large block of stock on the floor of an exchange in which a member solicits numerous buyers, each of whom takes a portion of the block. All the buy orders are combined, crossed with the orders to sell, and reported as a single trade. An exchange distribution is facilitated by the fact that buyers usually do not have to pay a commission. Compare exchange acquisition.