How to Discount Blocks Of Thinly Traded Stock

From time to time, estate planners encounter situations where a large block of thinly publicly traded stock needs to be valued for either estate-planning purposes or to prepare a federal estate-tax return. The block might be, say, 100,000 shares, and the stock's average trading volume, 2,000. Often, the planner looks no further than recent transactions in the stock to calculate the fair market value

From time to time, estate planners encounter situations where a large block of thinly publicly traded stock needs to be valued for either estate-planning purposes or to prepare a federal estate-tax return. The block might be, say, 100,000 shares, and the stock's average trading volume, 2,000. Often, the planner looks no further than recent transactions in the stock to calculate the fair market value of the block's shares.

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