blockage rule

blockage rule
A recognition of the principle that a large block of corporate stock is not as readily marketable, or marketable as advantageously, as a few shares. Phipps v Commissioner (CA10) 127 F2d 214.

Ballentine's law dictionary. . 1998.

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  • blockage rule — Process of determining value of large blocks of corporate stock for gift and estate tax purposes, based on the postulate that a large block of stock cannot be marketed as readily and as advantageously in price as can a few shares. Montclair Trust …   Black's law dictionary

  • blockage rule — Process of determining value of large blocks of corporate stock for gift and estate tax purposes, based on the postulate that a large block of stock cannot be marketed as readily and as advantageously in price as can a few shares. Montclair Trust …   Black's law dictionary

  • blockage — Recognition in the field of taxation of fact that in some instances a large block of stock cannot be marketed and turned into cash as readily as a few shares. Citizens Fidelity Bank & Trust Co. v. Reeves, Ky., 259 S.W.2d 432, 433. The discount at …   Black's law dictionary

  • blockage — Recognition in the field of taxation of fact that in some instances a large block of stock cannot be marketed and turned into cash as readily as a few shares. Citizens Fidelity Bank & Trust Co. v. Reeves, Ky., 259 S.W.2d 432, 433. The discount at …   Black's law dictionary

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