How is the value of a gift of stock determined if the market is closed?

The value of a gift of stock, when the market is closed, is determined using the mean between the respective highs and lows of the two surrounding trading days. This method provides a reasonable estimate of the stock’s value, reflecting recent trading activity rather than relying on potentially outdated information or arbitrary numbers. By averaging the highest and lowest prices from the two trading days before the market closure, the valuation reflects a more stable and current assessment of the stock's value, as it accounts for market fluctuations leading up to that point. This approach is useful to donors and recipients alike, ensuring that the gift's value aligns more closely with the market's expected performance.

Many investors and estate planners prefer this method because it utilizes actual market data instead of relying on the last closing price, which may not adequately represent fluctuations or changes in the stock's value since that last transaction. Therefore, option B is the most accurate method for determining the value of the stock gift in this scenario.