A Way of Executing Big Orders

A practice mentioned in this video. Suppose a big institution want to
sell 2 million shares XYZ from its holdings. The daily volume of XYZ is
about 1 million shares. The institution will give the order to its
broker. The broker will try to sell 100k or 200k per day without
upsetting the market. A week or so later, they quitely sold 990k or
980k. And then the broker will use the last 10k or 20k to drive the
stock as low as possible, so that the average price of the 2 million
shares is much higher than the market price at the end. The broker is
rewarded by the institution for the "good" execution.



Same practice may happen on the buy side too.