Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
8954564 | Finance Research Letters | 2018 | 6 Pages |
Abstract
We generalize the prevailing theoretical models that estimate the discount on securities for lack of marketability, by considering the discrete trading frequency of the securities. The generalization shows that accounting for the illiquidity of securities may significantly reduce their non-marketability discount. Further, the method reconciles the approaches of Longstaff (1995) and Finnerty (2012a), which are special solutions of our method.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Menachem (Meni) Abudy, Hadar Binsky, Alon Raviv,