Charles T. McCord, Jr. and Mary S. McCord, Donors - Page 73

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          impaired marketability.  In other words, the additional discount            
          typical of unregistered private placements as compared to                   
          registered private placements does not represent solely                     
          compensation for impaired marketability but represents in part              
          compensation for the relatively higher assessment and anticipated           
          monitoring costs normally associated with unregistered issues.              
               Having concluded that factors unrelated to impaired                    
          marketability play a variable role in the total discounts                   
          observed in private placement transactions, Dr. Bajaj then                  
          attempts to isolate the effect that impaired marketability has on           
          such total discounts.  To that end, he adds a variable for stock            
          registration to variables representing the three additional                 
          correlative factors and uses the statistical technique of                   
          multivariate regression to determine the effect of each such                
          variable on the discounts observed in his sample of private                 
          placements.  He concludes from that analysis that, over the 1990            
          to 1995 period of his study, a private issue that was registered            
          (thereby allowing purchasers to immediately resell in the public            
          market) would have required a discount that was 7.23 percentage             
          points less than an otherwise identical issue (in terms of the              
          three additional correlative factors) that was unregistered.                
                    c.  Further Adjustments                                           
               Dr. Bajaj considers and rejects any additional adjustment              
          (discount) on account of the long-term impaired marketability of            






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