Studies of Restricted Stock Sales Since 1990 Indicate a Median

question 77

True/False

Studies of restricted stock sales since 1990 indicate a median liquidity discount of about 20 percent with several showing a decline to 13 percent after 1997 following the holding period change under Rule 144 from two years to one.

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Definitions:

Long Run

The long run is a period in economics during which all factors of production and outputs are variable and can be adjusted, contrary to the fixed factors present in the short run.

Marginal Cost Curve

A visual display illustrating the variation in the expense of manufacturing an extra item of a product as the quantity produced alters.

Peak Efficiency

The state of operation where a system or process achieves its maximum productivity with minimal waste and effort.

Break-Even Point

The point at which total costs and total revenues are equal, resulting in no net loss or gain for the business.