Understanding Distribution Stock: Gradual Share Sales Explained

Distribution stock is the term used to describe the selling of portions of a group stock shares rather than selling an entire block of shares at once.

With distribution stock, the shares are sold gradually over a period of time. This can reduce the risk of a sudden drop in the stock's market value that could be created if it is all sold at once. Some companies may do this in order to test the way the market responds without risking all of the asset.