Answers
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A trade involving a large number or volume of securities that is publicized to the market before the order for the trade is formally made. |
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A high-volume transaction prematurely revealed to the market before the order is even entered. |
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A high-volume transaction prematurely revealed to the market before the order is even entered. Sunshine trades are meant to reduce confusion and speculation by investors by making the large transactions more transparent. |
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A high-volume transaction prematurely revealed to the market before the order is even entered. Source(s): investopedia.com |
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A technique originated in connection with portfolio insurance (and to a lesser extent with portfolio trading) in the mid-1980's to announce a specific basket or index trading plan before any orders were entered. The order would then be entered between the bid and offer at the announced time, and any untraded portion of the order would be withdrawn and re-entered according to the pre-announced schedule until the order was completed. The rationale for this process was that other market participants would be less concerned about the market impact of such an order than about an undisclosed order because the initiator of the Sunshine Trade was stating that there was no specific fundamental information behind the order. The order was motivated by a formulaic risk management or asset allocation model. The technique is rarely used today because the information that someone wants to trade has value to other traders. Also called Pre-Announced Trading. |
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Sunshine trade is a high volume trade which had been announced to the market prior to execution in order to avoid over reaction of the market to the sudden hike of trading volume. |
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What Does Sunshine Trade Mean? Source(s): http://www.investopedia.com/terms/s/ sunshinetrade.asp |
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A high-volume transaction prematurely revealed to the market before the order is even entered. Source(s): http://www.investopedia.com/terms/s/ sunshinetrade.asp |
