What is Dark Pool?
Dark pool is a privately organised exchange for trading activity i.e. securities and derivatives.
By keeping transactions anonymous, dark pools provide for enhanced liquidity.
Just imagine if a company publicly offers a large number of shares, the market would react to this news and potentially deflate the share price before they are even bought.
However they are also controversial as they can pose conflicts of interest.
By Victoria Wilson, LLB Law Student at the University of Keele and BeComAware Student Ambassador.
All BeComAware content is reviewed & approved by industry professionals.