Estimating the Fair Market Value of Large Blocks of Publicly Traded StockEstimating the Fair Market Value of Large Blocks of Publicly Traded Stock

The broader U.S. stock market has reported substantial returns over the past several years. These extraordinarily high returns have created large amounts of wealth for families who have been invested in the market. Some of these families have a large portion of their wealth concentrated in one publicly traded stock. This is often the case for families who are descendants of a publicly traded company’s founder or executives with substantial equity positions in the companies they manage. Whether for gift tax planning purposes or estate tax reporting purposes, at some point, the family may need a valuation of a large block of publicly traded stock. I’ll address what constitutes a “large” block of stock from a valuation perspective, the auth...