Loading...
CFA Level 3
Portfolio Management and Wealth Planning

Effective Execution Strategy for Large Trades

Very Easy Trading & Rebalancing Execution Strategies

During a portfolio review, a portfolio manager decides to execute a trade to sell a large block of shares in a company. Understanding that the market impact of such a trade could adversely affect the execution price, the manager must choose an appropriate execution strategy. Below are three potential execution strategies to consider. Which execution strategy is generally regarded as the most effective way to minimize market impact for large trades?

Hint

Submitted1.5K
Correct1.3K
% Correct85%