Minority Discount
/ˈmaɪnɚɪti ˈdɪskaʊnt/
Definitions
- (n.) A reduction in the valuation of a minority interest in a company, reflecting the lack of control or influence over corporate decisions.
The appraiser applied a minority discount when valuing the shareholder's stake due to limited voting power.
Forms
- minority discount
Related terms
See also
Commentary
Use the term specifically to highlight the valuation adjustment for non-controlling equity interests, distinguishing it from control premiums.
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