Dark Pool

Categories: Stocks, Bonds, Trading

A swimming pool filled with small children who have high fiber diets.

Or...an alternative trading system where investors can make large trades without visibility to anyone else until the trade has been executed.

This is mostly used by institutions involving a large number of securities. If the trade were made public, more investors might want a piece of the action, and then the security would most likely decrease in value. Dark pools are approved by the Security and Exchange Commission (SEC).

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