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Van Der Saar, CFA is a small-cap portfolio manager. He has decided to buy a sizeable position of Derek Inc., a regional retail company for his client. Derek is a listed company but its trading volume in the market is very low. Van is worried that his order will pump up the liquidity causing the prices to soar which will result in a higher cost-price per share. Hence, Van executes a series of block trades to reduce the price impact.
According to CFA Institute Standards of Professional Misconduct: