BROWSE

Taking The Street

What is 'Taking The Street'

A slang phrase referring to the hedge fund tactic of buying large amounts of a particular stock from banks and brokers in an effort to clean out these institutions' inventory in a short period of time.

Explaining 'Taking The Street'

Traders will do this knowing that these institutions, being market makers, will have to replenish their inventories by buying stock on the open market, which usually drives up the price of the stock. Once the price has increased, the traders will sell the stocks at a gain, often back to the same banks and brokers from whom the stocks were originally bought.


Further Reading


The interrelations of finance and economics: Theoretical perspectives
www.jstor.org [PDF]
… Page 3. VOL. 77 NO. 2 FINANCE AND ECONOMICS 31 turns and that leaves only a stock's betas to influence the uncertain portion of the port- folio return … usual in such a construction we will take other prices as given, notably St and the interest rate, r. (To prevent either …

Chasing the Greased Pig Down Wall Street: A Gatekeeper's Guide to the Psychology, Culture, and Ethics of Financial Risk TakingChasing the Greased Pig Down Wall Street: A Gatekeeper's Guide to the Psychology, Culture, and Ethics of Financial Risk Taking
heinonline.org [PDF]
… Page 3. VOL. 77 NO. 2 FINANCE AND ECONOMICS 31 turns and that leaves only a stock's betas to influence the uncertain portion of the port- folio return … usual in such a construction we will take other prices as given, notably St and the interest rate, r. (To prevent either …

Financial expertise of the board, risk taking, and performance: Evidence from bank holding companiesFinancial expertise of the board, risk taking, and performance: Evidence from bank holding companies
www.jstor.org [PDF]
… Page 3. VOL. 77 NO. 2 FINANCE AND ECONOMICS 31 turns and that leaves only a stock's betas to influence the uncertain portion of the port- folio return … usual in such a construction we will take other prices as given, notably St and the interest rate, r. (To prevent either …

Corporate financing decisions when investors take the path of least resistanceCorporate financing decisions when investors take the path of least resistance
www.sciencedirect.com [PDF]
… Page 3. VOL. 77 NO. 2 FINANCE AND ECONOMICS 31 turns and that leaves only a stock's betas to influence the uncertain portion of the port- folio return … usual in such a construction we will take other prices as given, notably St and the interest rate, r. (To prevent either …



Q&A About Taking The Street


What is a slang phrase referring to the hedge fund tactic of buying large amounts of a particular stock from banks and brokers in an effort to clean out these institutions' inventory in a short period of time?

Taking the Street.

What does it mean when we say that prices "emerge" spontaneously ?

Prices emerge spontaneously when buyers and sellers make decisions based on their individual preferences without being directed by an outside authority to set prices at certain levels .

How do people engage in exchange?

Parties to an exchange typically use money as a medium of exchange.

Is price setting always spontaneous ?

No , not all price setting occurs spontaneously . Some prices may be set through government intervention , either directly or indirectly . For example , minimum wage laws might be enacted which require employers to pay workers more than the market rate for their labour power . In this case , wages would not emerge spontaneously but rather would be dictated by the state .

Who will do this knowing that these institutions, being market makers, will have to replenish their inventories by buying stock on the open market, which usually drives up the price of the stock?

Traders will do this knowing that these institutions, being market makers, will have to replenish their inventories by buying stock on the open market.

Are all prices determined through free competition ?

No , some prices may result from monopoly

Where do most exchanges occur?

Exchanges occur where there is demand for a good or service.

What is another name for taking street?

Cleaning out inventory.

Why do people trade?

People trade because they expect to gain something from the transaction that they cannot obtain on their own.

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