Exchange Distribution

Definition - What does Exchange Distribution mean?

Exchange Distribution is a distribution of a large block of stock on the floor of the exchange that is crossed with offsetting orders.

Testopedia explains Exchange Distribution

An exchange distribution often takes place when a significant shareholder wants to sell their position in a security. The exchange distribution will be handled by a member firm. During the course of the distribution the firm may call its large clients to measure their interest in purchasing a portion of the block of stock. The floor broker with the cross the stock with the approval of the designated market maker (specialist)

Connect with us

Testopedia on Linkedin
Testopedia on Linkedin
Tweat www.testopedia.com
"Testopedia" on Twitter


'@Testopedia'
Sign up for Testopedia's Free Newsletter!