A trade in which a number of small buy orders are placed together and executed in order to fill a single, very large sell order. An exchange distribution may create the appearance of a single trade (and indeed it is reported as such), but, in fact, it is the result of a streamlining process whereby a broker makes what would have been smaller trades at once. The broker receives a special commission for making an exchange distribution. See also: Block.
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.