Educational guide · LSE
UK Block Trades: A Guide for LSE Shareholders
Short answer
A block trade is a large, privately negotiated sale of listed shares, usually arranged by a broker at a discount to the market price to avoid moving the market.
Frequently asked questions
Block trade or share-backed financing?
A block trade exits the position, usually at a discount. Share-backed financing raises cash while keeping the shares and their upside, but adds financing cost and price risk.
What decides the terms for LSE-listed shares?
Mainly the stock's liquidity (average daily traded value), its volatility, the size of the holding relative to free float, any lock-up or trading restriction, and the tenor requested. Concentrated or less liquid holdings usually receive lower advance rates.
Related UK guides
See also
This guide is general information, not financial, legal or tax advice. It does not describe Squadron Capital's specific terms.