Deja Vu #2: The SEC Institutional Investor Study (Published 1971)

In this post, we review the SEC Institutional Investor Study. This review appeared in my book, Quantifying Marketability Discounts, which was published in 1997. That book introduced the Quantitative Marketability Discount Model (QMDM) as a method to develop marketability discounts using a shareholder-level discounted cash flow model. While introducing a new method for developing marketability discounts under the income approach, I felt it was important to have a solid review of the restricted stock studies, which provide a (not very good, in my opinion) method under the market approach. Read more about the SEC Institutional Investor Study here.