Distribution Stock

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Distribution Stock.

An occurrence when large groups of a security are sold gradually in smaller groups to increase the amount of sell orders on the market for a security, thus lowering its price.  The method of securities being sold this way is often simply referred to as “distribution” by traders. It’s also an important factor many traders must consider and manage to avoid massive and unexpected drops in stock prices.