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Answer: Block sales of restricted stock
Block sales of restricted stock provide the most direct evidence for quantifying lack of marketability discounts (DLOM). These transactions involve shares that cannot be immediately sold in the public market, making them comparable to private company shares. The price discounts observed in these transactions relative to freely tradable shares provide empirical evidence for DLOM quantification.
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Which of the following is the most comparable data to use for quantifying a lack of marketability discount?
A
Block sales of restricted stock
B
Percentage of ownership concentration
C
Limitation on the pool of potential buyers