Size matters – Understanding blockage discounts on publicly traded stock

Description

Abstract: Discounts for lack of marketability and lack of control are well known to attorneys whose practices commonly call for valuations. A lesser-known type of discount could, however, also lead to discounts that have a significant impact on estate and gift tax planning, as well as divorce cases and a variety of other types of litigation. This article explains why the specific facts and circumstances surrounding a block of stock will determine whether a blockage discount applies.