Discount for the Lack of Liquidity Share When Assessing a Private Company

Journal paper

Russian Journal of Entrepreneurship *
№ 5-1 / May, 2010
* Этот журнал не выпускается в Первом экономическом издательстве

Please, cite as:
Onishchuk Yu.Yu. Skidka za nedostatok likvidnosti aktsiy pri otsenke stoimosti zakrytoy kompanii // Rossiyskoe predprinimatelstvo. – 2010. – Tom 11. – № 5. – S. 89-94.

Abstract:
Liquidity of company’s securities is of particular importance for investors who have invested their money in the company’s shares. If the shares have high liquidity, the owners can quickly sell them when necessary and they have nothing to lose but gain at best. However, if the shares can not be sold immediately, their price is considerably discounted when offering them for sale. The article is devoted to the problem of a correct definition of discount for illiquidity when assessing the cost of capital of a closed company and the role of adjustment for shares illiquidity when assessing value of assets.

Keywords: securities, money flows, value assessment, discount for lack of liquidity, premium forcontrol, levels of companys value, equity capital

Страница обновлена: 08.05.2020 в 21:25:29