Lack of marketability refers to the absence of a ready or existing market for the sale or purchase of the asset or security being valued. Marketability is one of the challenges of privately held businesses or shares held in such businesses and the smaller the shares, the more difficult the marketability. To address this issue, valuers apply a Discount for Lack of Marketability (DLOM) in the valuation of closely held businesses. DLOM is the amount or percentage deducted from the value of an ownership interest to reflect the relative absence of marketability of a closely held business or an interest is such a business to arrive at the final determination of the fair market value.