Blockage: Discounts for selling large amounts of shares

This will be a quick & painless article: Many people wonder whether there is a discount for the unease of selling a big block of public shares?

This is usually referred to 'blockage', i.e. the impact on a public share price if a large block of shares is sold at once. According to the accounting standards a discount of such nature is not allowed (AICPA guide paragraph 13.13).

Therefore, irrespective of the number of shares that are being held, the price of a level 1 investment should also be PxQ (Price mulitplied by quantity of shares held).