The discount that is demanded by a buyer of a large block of stock from the seller as compensation for the risk of market impact. Typically, market impact is mainly viewed as the negative impact on market prices resulting from the sale of a large amount of stock in one transaction/ trade or in a series of concurrent trades. Price concession is part of the market impact cost/ price impact cost (it is known as the temporary component). It is mainly offered to attract counterparties at the time of order execution.

With demand for liquidity being information-motivated, price concession means that the investor will have to pay a higher price as a buyer and a lower price as a seller.