One reason institutional customers will use block houses is because
A) they are guaranteed much lower commission charges.
B) the specialists will raise the bid and lower the ask prices.
C) they will get better prices for their orders.
D) the orders are automatically placed in the specialist's book.

Question

Quizplus · Accepted Answer

Institutional customers may use block houses to get better prices for their orders. Block houses specialize in placing large trades and have access to a wide network of traders and other market participants that can help ensure that the customer receives the best possible price for their order. This can include access to dark pools and other off-exchange trading venues that may offer better prices than the public markets. The other options are not necessarily true or relevant for why institutional customers use block houses.

One Reason Institutional Customers Will Use Block Houses Is Because