The following is a brief summary of the most important factors to be considered in valuing unquoted shares in the open market. Unquoted shares are those that are not quoted. For the meaning of quoted shares, see the introduction to I8.301
The state of the economy
Whatever the nature of the business in which the company is engaged it is bound to be affected by the state of the national economy, the money supply and government policy in general. To a large extent, the impact of these factors upon share valuation will be reflected in the current ratings of quoted shares, although any comparisons between shares in private companies and quoted shares should be made with care — I8.315–I8.319.
In A-G of Ceylon v Mackie1 consideration was given to the effect the Second World War would have had on profitability and in Holt v IRC2 the share valuation reflected the fact that there had been riots following a boycott of European traders shortly before the deceased's death and the devaluation
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