blockage discount

blockage discount definition - business

blockage discount

A reduction from fair market value because of an unusually large amount. For example, the price offered for a shareholder's stock may be below fair market value if the block of stock is so large it will be difficult to dispose of efficiently.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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