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Closed Corporation
(redirected from Closed Corporations)

   Also found in: Dictionary/thesaurus, Legal 0.01 sec.
Closed corporation
A corporation whose shares are owned by just a few people, having no public market.

Closed Corporation
A company in which a small group of shareholders controls the majority of the shares. These majority shareholders tend to hold on to the company's stock, and, for that reason, only minority shares are traded, leading to light trade volume. Closed corporations are, by their nature, resistant to hostile takeovers and proxy wars. They tend to be more stable than other companies because their share prices are not determined by (sometimes irrational) investment decisions, but by the value of the company itself. However, closed corporations do not have access to as much working capital as corporations with more shareholders. They are also called closely held companies.

closed corporation


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A public company is traded on a stock exchange, and is owned by stockholders instead of individual people In certain public companies, called closed corporations, only a few people hold all the stock, and in this case, the company may resemble a partnership more than a corporation A public company is traded on a stock exchange, and is owned by stockholders instead of individual people.
Articles of closed corporations typically restrict the conditions under which shares are transferable.
 
 
 
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