Which of the following is an adjustment to the value of a share because it is not controlling?
A) A minority discount
B) A marketability adjustment
C) A liquidity adjustment
D) A synergistic premium
E) None of the above

Question

Quizplus · Accepted Answer

A minority discount is an adjustment made to the value of a share because it does not give the holder control over the company. This is a common adjustment made when valuing minority shares in a private company or in the context of a merger or acquisition. Choices B and C are adjustments related to the ease of selling or trading a share, while choice D is a premium paid for the potential benefits of combining two companies.

Which of the Following Is an Adjustment to the Value