Marketability Discounts and Risk in Transactions
Prior to Initial Public Offerings
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TABLE 2 |
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DISCOUNT OF PRE-IPO TRANSACTION PRICE FROM OFFERING PRICE |
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CORRELATION WITH PROXIES FOR RISK |
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Yes indicates statistical siginficance at the five (5) or one (1) percent level or better |
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No indicates relationship not statistically significant at the 5 percent level |
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Blank indicates data not available for testing |
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Company Size |
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Sample Period |
Number |
Time |
Equity |
Sales |
Market Cap. |
Equity/Market Cap. |
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|
Sales and Options |
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|
Jan. 80 - June 81 |
13 |
no |
no |
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|
Jan. 85 - June 86 |
21 |
no |
no |
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|
Aug. 87 - Jan. 89 |
26 |
yes(5) |
no |
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|
Feb. 89 - July 90 |
23 |
no |
no |
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|
Aug. 90 - Jan. 92 |
34 |
yes(1) |
no |
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|
Feb. 92 - July 93 |
52 |
yes(1) |
no |
no |
||||||
|
Jan. 94 - Jan. 95 |
44 |
yes(5) |
no |
no |
||||||
|
Nov. 95 - Apr. 97 |
89 |
yes(1) |
no |
no |
no |
yes(1) |
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|
All periods |
302 |
yes(1) |
no |
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|
Sales Only |
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|
Jan. 80 - June 81 |
5 |
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|
Jan. 85 - June 86 |
4 |
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|
Aug. 87 - Jan. 89 |
9 |
no |
no |
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|
Feb. 89 - July 90 |
3 |
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|
Aug. 90 - Jan. 92 |
4 |
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|
Feb. 92 - July 93 |
7 |
no |
no |
no |
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|
Jan. 94 - Jan. 95 |
13 |
no |
yes(5)* |
no |
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|
Nov. 95 - Apr. 97 |
22 |
no |
yes(5)** |
no |
no |
yes(1) |
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|
All periods |
67 |
yes(5) |
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