What is the meaning of Liquidity discount?

Liquidity discount is a decrease in the value of a private company compared to the value of a similar but publicly traded company. Since an investor in a private company cannot readily sell his or her investment, the shares in the private company must be valued less than a comparable public company.

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APABarry Goldsmith. (2010). Liquidity discount. Retrieved September 20, 2026, from http://smartdefine.org/liquidity_discount/definitions/1157314
ChicagoBarry Goldsmith. 2010. "Liquidity discount" http://smartdefine.org/liquidity_discount/definitions/1157314 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, Liquidity discount, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/liquidity_discount/definitions/1157314>.
MLABarry Goldsmith. "Liquidity discount" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/liquidity_discount/definitions/1157314>