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30 September, 04:20

Explain how shares of stock traded on a stock exchange are valued for estate purposes. What is the blockage rule?

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  1. 30 September, 07:10
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    Explanation: Shares traded on a stock exchange are valued at the average of their high and low selling prices as of the applicable valuation date. The blockage rule allow a reduction from the average value where the decedent owned a large block of shares that would be difficult to dispose of at one time without using an under writer and/or accepting a lower price.
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