Date of Award

Spring 1956

Document Type

Thesis

Degree Name

Master of Science

Department

Business Administration

Abstract

It is recognized that one of the primary functions of modern day banking is the extension of credit. Properly administered, the fulfillment of this function is, either directly or indirectly, of importance to the general welfare. Properly loaned money is a source of income to the bank, and hence to the stockholders and employees; it enables the retailer to carry his inventory; the wholesaler to purchase and distribute a variety of products; and the manufacturer to produce a needed finished product. Direct loans to individuals are likewise of vital importance for many reasons. Borrowed funds may enable an individual to meet the demands of an unexpected emergency, to build a home, etc. invest in a business,etc. Generally, the extension of credit is essential to our everyday way of life and has been largely responsible for the high standard of living which we enjoy.

It is toward one phase of the broad field of credit administration that the effort of this paper are directed; that is, the area of the secured loan, and, even more specifically, the area relating to loans secured by the pledge of closely held and untraded stocks. The purposes of this study are:

1. To present and briefly discuss the merits and/or faults of tha methods currently used for the valuation of closely held and untraded stocks.

2. To develop and/or represent a suggest:ed procedure for the valuation of closely held and untraded stocks.

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