A discount for valuation purposes is allowed when the stock involved represents a minority interest.

Name: A discount for valuation purposes is allowed when the stock involved represents a minority interest.
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When valuating a minority interest in a company, a discount is usually applied due to the lack of control and voting power that comes with owning less than 50% of the shares. This discount is commonly known as a "minority discount" or "lack of control discount".

A Discount for Valuation Purposes Is Allowed When the Stock