ELI5: Explain Like I'm 5

Dark pool

Hi kiddo, have you ever played hide and seek? You know how you can hide somewhere where nobody can see you?

Well, in the grown-up world, there is something called a dark pool, and it's kind of like a hiding place for stocks. It's a private forum, sort of like a secret club that allows people to buy and sell stocks without everybody else knowing about it.

When people want to buy or sell something, they usually do it in a place where everyone can see what's happening, like the stock market. But in a dark pool, trading happens behind closed doors, where nobody can see what's happening.

It's like a secret place that only certain people know about, and they can trade without affecting the price of the stock or alerting other traders. This is because dark pools allow them to, in a way, stay invisible when they make transactions.

Dark pools aren't bad or illegal, but they can be a bit tricky because people can use them to trade in a way that's not open or transparent. In a way, it's like playing hide and seek with stocks.