Summary
The objective of this study of LEAPS is to contribute to improved substantiation of the discount for lack of liquidity, long a concern of both valuation practitioners and courts. The study shows that the stocks of even the largest and most secure companies have discounts of 10% or more. For companies with sales revenues under $500 million, discounts of 23% to 36% are common.
Minimum Marketability Discounts, 3rd Edition
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Copyright American Society of Appraisers
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