A two-thousand-share block facing a broker would be given to him as a limit order and the broker would probably go direct to the specialist and ask for his help. The specialist would then handle it like any other limit order, matching it with buy orders above the limit until it was all covered.

But suppose it was far too big for such treatment. Then the broker would handle it as a secondary distribution, much the way new stock in a first, or primary, distribution is handled. The proposed distribution would be announced on the ticker tape and the sale held after the market closed for the day. Brokers would band together to buy the block at several commissions less than the going price and would then sell it without commission at the final quote for the day. The "without commission" gimmick is the sweetener that makes the stock de;iirable to somebody who, except for that, could have bought, it at the same price on the market.

Or a block somewhere between the one thousand level and the secondary distribution level could be handled by what is known as an exchange distribution.

This is usually handled by a single brokerage house. They accept the order on, a "best efforts" basis, which means that they will do their best with it, but guarantee nothing as to price or the amount of stock they can sell.

Usually, though, if it's a well-known stock they sell it all without disturbing the price too much.

Once having accepted the block for sale they have their salesmen call customers to see if they are interested in buying, again without the commission which is paid by the seller. Once the broker has received enough buy orders to match the block, he takes the whole works to the exchange floor and offers the block, usually at the last sale price, and then in almost the same breath bids for it.

If it should be a buy order instead of a sell order, the same technique is used but it is called an exchange acquisition. It's harder to accomplish because no salesman wants to go to a customer and ask him if he wants to sell a stock the salesman himself has presumably suggested that he buy in the first place. It's likely to be a bit embarrassing.