DLOM is only relevant to privately held companies as they are not listed on a financial exchange. Unlike publicly traded stocks, there is no avenue for private stockholders to easily convert their shares into cash. This lack of marketability, or the ability to swiftly transform shares into cash, is absent in privately held companies. On the other hand, publicly traded companies possess a market where shareholders can sell their shares to interested investors. Due to the difficulty in liquidating private shares, a discount for lack of marketability (DLOM) may be applicable when valuing a private company. Consequently, a private company should be valued at a lower price compared to its public counterparts.