Re:Autonomous corporation “The DAO” has become the biggest c...
by JumpCrisscross on Tuesday May 17, 2016 @04:22AM
(#11712023)
> I [sic] you tried to sell all Apple stock in a single day it would also sell at well below market rate
You are describing a takeover. These commonly come with control premiums [1], not discounts.
Liquidity does not proceed across time and size preferences continuously, or even monotonously. Between a small block sold in minutes and an entire company sold in months, the time component of the liquidity surface tends to dominate the size component.
You are describing a takeover. These commonly come with control premiums [1], not discounts.
Liquidity does not proceed across time and size preferences continuously, or even monotonously. Between a small block sold in minutes and an entire company sold in months, the time component of the liquidity surface tends to dominate the size component.
[1] https://en.m.wikipedia.org/wiki/Control_premium