Finance glossary
Dark Pool
Definition
A private exchange where large trades execute without public visibility.
Dark pools are private trading venues that let institutions buy or sell large blocks of shares without revealing their intentions to the broader market. This minimizes price impact from big orders. Critics argue they reduce transparency and can disadvantage retail investors who trade on public exchanges.
In a sentence
The pension fund unloaded a huge block of shares in a dark pool to avoid moving the public price.
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