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Valuation: When the quoted share price is not the value

Wednesday, June 07, 2017 @ 9:33 AM | By Paul Mandel and Suzy Lendvay

Valuation of investments in publicly traded companies are often required by lawyers working with clients involved in shareholder disputes, various tax issues and matrimonial property division purposes.

It is important to understand that the quoted share price is not always the value. There are two common situations giving rise to discounts from the quoted price:

 Difficulties arise when attempting to liquidate a large ownership position in a thinly traded public company. In these cases, it is often appropriate to discount the quoted price to arrive at...