Marketability Discount
/ˌmɑːrkɪtəˈbɪləti dɪsˈkaʊnt/
Definitions
- (n.) A reduction applied to the value of an asset to reflect its lack of liquidity or ease of sale in the marketplace.
The appraiser applied a marketability discount to the restricted shares due to their limited transferability.
Forms
- marketability discount
- marketability discounts
Related terms
See also
Commentary
Marketability discounts are commonly applied in business valuations to reflect the diminished value of assets that cannot be quickly or easily sold in an open market.
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