A discount for lack of marketability (DLOM) is a reduction in the value of an asset due to its difficulty in being sold or traded. For instance, a privately held company’s shares may be worth less than those of a publicly traded company because they are less liquid.
DLOM is an important concept in finance, as it can significantly affect the value of an asset. There are a number of factors that can contribute to DLOM, including the size of the asset, its marketability, and the overall economic climate. Historically, DLOM has been a key consideration in estate planning, as it can affect the value of an estate for tax purposes.