Dark pools

Dark pools are private financial exchanges where large investors can buy or sell significant amounts of stocks without revealing their intentions to the public. They help prevent market impact—avoiding sudden price changes caused by big trades. While they offer privacy and potential cost advantages, they are less transparent than public markets, which can raise concerns about fairness and oversight. Essentially, dark pools facilitate discreet, large-scale transactions among institutional traders, balancing the need for confidentiality with market integrity.