Valuation of securities, Finance Basics

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Valuation of Securities

The previous methods were perfect for valuing the entire business however it is also essential to ascertain the value of part of a business namely shares, or a block or securities of shares in a limited liability company. The valuation of securities and shares in particular is essential in the following aspects as:

i) To facilitate take-over bids

ii) To permit for mergers.

iii) To facilitate for company accounts disclosure

iv) For disposal of blocks of shares or reasons of acquisitions.

v) For reasons of computing capital gains tax or not applicable in US at present

vi) For tax payers' executors in assessing the capital transfers methods

vii) For ascertaining stamp duty payable.


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