If you want to know what is the difference between a bulk deal and a block deal.
You are on the right page!
As a stock market investor/trader you need to under what is bulk deal and block deal.
Hello, Traders/Investors welcome to a fresh article on “Multibaggercalls.com”. Here I explained the “Difference Between Bulk And Block Deals”
And I will also explain What is block deal and bulk deal.
It’s very important for new traders/Investors to understand block deal and bulk deal.
Because the impact of block deal and bulk deal on the stock price is very high.
If any promoter or institution sell or buy stock in bulk deals or block deals, it will directly impact the stock price.
Also Check:- Best Multibagger Stocks To Invest For Next 10 Years.
Block Deal And Bulk Deal Explained.
Investors often look at bulk and block deals to judge the interests of large investors in the stock.
If any deals are constantly in stock in time.
It can be seen as a sign of confidence and stock price may increase in the near future.
But a large institution or investor buying stock through such deals does not mean that the stock will increase.
Many times, the big block of the stock purchase.
The disclosure that the exchange has been made can be the final step of buying by a large investor.
Who wants to signal your interest in the stock. In essence, some large HNWI (high net worth personal) use it as fodder to attract more buyers.
Definition of ‘Block Deal’
There is a block deal through a different window provided by the stock exchanges.
This window is open only from 35 minutes i.e. 9.15 am to 9.50 hrs. Each trade should be the result of delivery.
A block deal occurs when two parties agree to buy or sell shares at the agreed price between themselves.
The rules of the Securities and Exchange Board of India (SEBI) show that the block deal order should be kept for the closing price of the previous day or not exceeding 1% to 1% of the current market value.
This is the same transaction. At least five lakh shares or a minimum value of Rs 5, between the two sides, which are mostly institutional players.
The block deal order is notified for exchanges and is disclosed on the market’s website with details such as the owner, the customer, the number of shares, and the average value on the deal.
Definition of ‘Bulk Deals’
It is said that a big deal has happened if an investor has purchased or sold more than 0.5% of the company’s equity shares in single or multiple transactions.
A big deal can be made at any time within business hours. The wholesale deal market operates.
The broker, which facilitates business, whenever this happens, the stock exchanges have to give details of the business.
Difference Between Bulk Deal And Block Deal.
Here I explain the major difference between bulk deals and block deals to identify bulk and block deals.
Unlike a block deal which is through a separate window that is open for only 35 minutes at the beginning of trading hours in the stock exchange.
Everything happens through the wholesale deal business day.
Another big difference is that a big deal has happened.
If the business of more than 0.5 % of the company’s equity shares is traded under one customer code and one or more transactions.
Apart from this, bulk deal markets are operated while the block parties require two parties.
Bulk deals for the day should be disclosed on the stock exchange by the broker using DUS on the same day.
I hope now you understand what is block deals and bulk deals and what is the difference between bulk deals and block deals. If someone has any queries or suggestions please ask in the comment section.Gashik