An active market refers to a market with vibrant and buoyant trading where sellers can realise value on the trading date. One characteristic of an active market is the presence and vibrant interactions between willing buyers and sellers in the determination of market prices. Without active markets, the sale of private businesses and shares can delay excessively and the consummation of such transaction can be costly. The discount for lack of marketability is a discount applied to closely held businesses not listed on the stock market to compensate for the delays and illiquidity risks associated with selling and buying private businesses compared to listed counterparts with freely trading shares on the stock market. The existence of an active market is the foundation of the fair market value principle.