Lack of marketability discounts suffer more controversial attacks

Business Valuation UpdateVol. 8 No. 2
February 2002
Shannon P. Pratt, CFA, ARM, ABAR, FASA, MCBA, CM&AA
discounts & premiums
american society of appraisers (ASA), pre-IPO study, securities and exchange commission (SEC), fair market value (FMV), internal revenue service (IRS), american institute of certified public accountants (AICPA), quantitative marketability discount model (QMDM)


The apparently well-meaning Drs. John Kania and Mukesh Bajaj are at it again, espousing discounts for lack of marketability for stocks of closely held companies that are a fraction of those encountered in the real world.