Sentences with phrase «illiquidity discount»

«It is a basic fact in finance literature that there is a liquidity premium for easily saleable, publicly traded securities, and an illiquidity discount for closely held companies whose stock is not saleable.»

the vic writeup suggests an 18 % illiquidity discount on top of any discount related to the 15 % of ev stock purchase discount for management.

Whether one should apply an illiquidity discount at all when valuing SPLP depends on what you think the endgame is for the LP.

If a liquidity event were to come along we might see the illiquidity discount shrink or disappear.

Not exact matches

First, in light of the illiquid state of the market in November 2008 (an illiquidity that likely would have been exacerbated by AIG's failure), it is far from certain that the underlying CDOs could have easily been liquidated, even at the discounted price of $ 4.3 billion.

Value stocks» outperformance is even more pronounced for small and mid cap companies, because they tend to trade at even bigger discounts due to illiquidity and lack of analyst coverage, as well as being able to achieve higher growth rates than larger companies.

You will note that he took units instead of cash for the accrued management fee in April, but he allowed himself a 15 % discount on the unit price due to «illiquidity» (he can't sell right away... but seemingly neither can we as the daily volume is quite low).

There are clearly reasons why the units trade at a discount to NAV; there is the illiquidity of the units, small size of the market float and thus lack of institutional interest, as well as the opacity of the holding company's structure.