In financial markets there can be a trade-off between efficiency and transparency. Public markets are arguably open to a wider spectrum of investors than private markets. But that can make transactions — from buying shares to a merger or acquisition — take longer.
This dilemma is perfectly encapsulated in the concept of block trading, which is carried out by a number of investment banks. Here, a block trade or a large quantity of an issuer’s stock is privately arranged and executed outside of public markets.
