Bulk Deal
Key Highlights
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A bulk deal refers to a transaction in the stock market where a large quantity of shares (or other securities) are bought or sold in a single trade, typically exceeding a specified threshold set by the stock exchange.
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These deals are often executed between institutional investors or large shareholders and are reported separately from regular trades.
What is Bulk Deal?
A bulk deal refers to a transaction in the stock market where a large quantity of shares (or other securities) are bought or sold in a single trade, typically exceeding a specified threshold set by the stock exchange. These deals are often executed between institutional investors or large shareholders and are reported separately from regular trades.
Purpose of Bulk Deals
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Big Trades: They make it easy to buy or sell a large chunk of shares all at once.
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Strategic Moves: Big investors or company insiders use them to jump into or out of a company’s stock.
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Keep Things Steady: They help avoid wild price swings that could happen if such a large trade hit the open market.
How Do Bulk Deals Work?
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Threshold Limits: Stock exchanges set a minimum number of shares for a trade to count as a bulk deal, like 0.5% of a company’s total shares.
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Public Record: These deals are reported to the stock exchange and shared with the public for transparency.
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Execution: They might be negotiated privately or happen through special trading sessions.
Bulk Deal Vs Block Deal
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Bulk Deal: Any large trade over the exchange’s limit, often done in the regular market.
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Block Deal: A pre-arranged trade for a big batch of shares, done in a special trading window at a set price.
Why Are Bulk Deals Important?
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Market Mood: A bulk deal can hint at what big investors think about a company—whether they’re confident or worried.
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Price Effects: Even though they’re meant to avoid disruption, big trades can sometimes nudge a stock’s price.
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Openness: Sharing details of bulk deals keeps everyone in the market informed about major trading activity.
