Block House

  

A block house is a brokerage firm that focuses on handling large trades from institutions, mutual fund managers, banks, insurance companies, or pension fund managers.

Block houses usually mange transactions that involve at least 10,000 shares of stock, or $200,000 in market value. Large block house trades can cause volatility in the general stock market, so many investors like to keep a close eye on their activities.

Related or Semi-related Video

Finance: What is a Full-Service Broker?3 Views

00:00

Finance a la shmoop what is a full-service broker? full-service

00:08

"everything" close relative of the bulge bracket remember those guys want

00:14

to trade stocks here at this full service brokerage well you got it [Clipboard appears with checklist]

00:18

how about trading some bonds yep need investment advice hoo you bet we got rap

00:23

accounts here too does it have to be good advice well it's different gonna

00:27

retire well they'll suggest Goodyear or fire stone or Michelin if they're you

00:32

know socialist and European gonna quit working and play golf all day well then [Man playing golf]

00:37

a full service broker has advice for that as well want tax planning yep

00:42

referrals to other professionals like estate planning lawyers and that kind of

00:46

stuff got a kid heading to college in a decade all right well it's time to talk

00:50

529 savings plan got a grandparent dying soon whoo time to talk IRA distributions

00:56

and charity need Warriors tickets yeah what well they're full service they just

01:02

build they'll charge you for it but they're full full something [State Warriors basketball team playing a game]

Up Next

Finance: What is a Block Trade?
22 Views

What is a Block Trade? A Block Trade just means that a very big number of securities are being traded, either bought or sold. The group of securiti...

Finance: What is a Broker-Dealer?
16 Views

What is a Broker-Dealer? A broker-dealer trades for both its own account and for the accounts of its clients. It acts as a broker when it buys and...

Find other enlightening terms in Shmoop Finance Genius Bar(f)