What generally happens to the price of a stock when a trust company sells a large portion of its stock? and Trailer Stock

What generally happens to the price of a stock when a trust company sells a large portion of its stock?

I see Merill Lynch Trust Co. is planning to sell over 1 million shares of Yahoo stock on April 20, 2007. What will happen to the stock price that day?


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Answer by muncie birder
It is a little difficult to say. It to their benefit to sell it in such a manner as not to effect the market price detrimentally. If it were I selling the shares, I would do it in 50,000 share blocks over several days. A good stock broker such as Morgan Stanley or Goldman Saks will know how to handle such a transaction without adversly effecting the price of the stock.

It is not beyond the relm of possibility that they might find a buyer wanting the entire amount. That has happened frequently in the past.

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