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exchange distribution

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Financial Dictionary

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.

Investopedia Commentary

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

Related Links

The Nitty-Gritty Of Executing A Trade
Defining Active Trading
Stock Basics Tutorial

See also: Exchange, Ticker Tape

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Financial Dictionary

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.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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