The risk associated with an illiquid market for a specific stock is referred to as the liquidity or marketability risk.
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Asset valuation includes specific business risks but ignores any adjustment for liquidity risk.
Methodologies employed to value private firms are substantially different from those employed to value public firms.
It is easier to obtain the fair market value of private companies than for public companies because of the absence of volatile stock markets.
An increase in the target firm's reserves for doubtful accounts increases taxable income, while a decrease reduces the firm's taxable income.