Suppose Hamilton Corporation has 3Mn shares of Microsoft Corporation.

The Company has decided

to divest completely from this stock. Average daily trading volume in the stock is around 250,000
shares on daily basis. How many days on average it will take for the Company to fully offload these
shares?

250,000 x 40% = 100,000 shares

3,000,000/100,000 = 30 days

Suppose Cisco Corporation has 8Mn shares of Vella Corporation. The Company has decided to retain
75% stock. Average daily trading volume in the stock is around 400,000 shares on daily basis. How
many days on average it will take for the Company to offload these shares if Company sells 30% of
average volume?

Shares to be sold = 8,000,000 x 25% = 2,000,000 shares

400,000 x 30% = 120,000 shares

No. of days = 2,000,000 / 120,000

= 16.67 or 17 days.