I know, there is no fixed way. But what is the generally followed pattern or some most common ways to trade in large amount? (Excluding bulk deals).
Suppose, XYZ company wants to buy ABC stock for 100 crore. How will they do it?
WIll they place a limit order of 100 crore? Will they place multiple limit order of 1 crore every 5 minutes? Do they keep on buying/selling, even if the price increase/decrease a lot? Can someone give me a rough picture of the details?
I am sure they will buy on a staggered basis and over a period of time if the amount involved is large and substantial. large and substantial has a direct co relation with the volumes of the particular stock has in the market.
As an example, RBI has given permission to LIC to increase their stake in Indusind Bank upto 10%. Currently LIC holds 4.95% in IndusInd Bank. This permission is for one year. This is to allow LIC if they are interested in topping up the holding is done over a period of time without disrupting the market at one go.
Disc: personal views only