Typically, block orders are placed by
A) government agencies
B) institutional customers
C) specialists for their own accounts
D) floor traders for their own accounts

Question

Quizplus · Accepted Answer

Block orders are typically placed by institutional customers, such as pension funds, mutual funds, and investment banks, who seek to buy or sell a large amount of securities at once. This is because institutional investors have significant assets under management and require large trades to meet their investment objectives. Government agencies may also place block orders, but this is less common. Specialists and floor traders generally do not place block orders for their own accounts.

Typically, Block Orders Are Placed by