Page "Business valuation" Paragraph 86

All other factors being equal, an interest in a publicly traded company is worth more because it is readily marketable.

Conversely, an interest in a private-held company is worth less because no established market exists.

The IRS Valuation Guide for Income, Estate and Gift Taxes, Valuation Training for Appeals Officers acknowledges the relationship between value and marketability, stating: " Investors prefer an asset which is easy to sell, that is, liquid.