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Post a RequestLower of Cost or Market Definition
lower of cost or market – adj: financial term, abbreviated
LCM or LOCOM; valuation convention for portfolio companies used by some venture
capital funds and other investors where investments are listed on the books at
the lower of either the cost of the original investment or the market value of
the investment. Some VCs prefer other valuation methods, since LCM understates
fund performance during the life of a fund.
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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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