Question

Which of the following transactions on the NYSE in ABC common stock would meet the minimum size requirement to be considered a block trade?

1) $100,000 total market value
2) 10,000 shares
3) 200,000 shares
4) 100,000 shares

Answer 1

Both 3) 200,000 shares and 4) 100,000 shares would meet the minimum size requirement for a block trade on the NYSE, as a block trade typically involves at least 10,000 shares or a market value of $200,000 or more.

Step-by-step explanation:

Regarding which transaction would meet the minimum size requirement for a block trade on the NYSE, it's important to note that a block trade is typically considered to be a large single trade of a stock.

While the specific size can vary depending on the brokerage firm or market standards, traditionally, a block trade involves at least 10,000 shares of stock or a total market value of $200,000 or more at the time of placement.

Therefore, out of the provided options, both 3) 200,000 shares and 4) 100,000 shares would meet the size requirement to be considered a block trade.

The 200,000-share trade is straightforward as it is a large number of shares. The 100,000-share trade qualifies as well because it involves a large number of shares, indicating a substantial transaction.

A block trade refers to a large transaction of shares on the stock exchange.

The minimum size requirement for a block trade on the NYSE in ABC common stock would be 10,000 shares, which is option 2. Options 1 (total market value of $100,000), 3 (200,000 shares), and 4 (100,000 shares) do not meet the minimum size requirement for a block trade.