What is Taking the Street?
Taking the Street is slang for buying large amounts of stock from institutions so that those sellers have to buy more stock, which drives the price up.
How Does Taking the Street Work?
Let's say John Doe has a Gordon Gekko complex and wants to make some by manipulating the for Company XYZ . He knows that ABC owns about 5% of the company, so he offers to buy their , which they agree to sell. He then calls DEF Fund and does the same thing. Soon, he's bought all the institutions' shares.
The institutions, meanwhile, want to still have a position in Company XYZ, so they go to the market and buy a bunch of Company XYZ stock. This of course drives up the price of Company XYZ stock, making John Doe a few million bucks. He has taken the Street.
Why Does Taking the Street Matter?
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.