BLOCKAGE DISCOUNT Definition

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BLOCKAGE DISCOUNT ia an amount or percentage deducted from the current market price of a publicly traded security to reflect the decrease in the per share value of a block of those securities that is of a size that could not be sold in a reasonable period of time given normal trading volume.

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LIQUIDITY RATIO see CASH RATIO.

AVERAGE COST METHOD is using a weighted average cost for items in inventory rather than actual cost for each specific item.

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