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Closed Corporation
(redirected from Closely-Held Companies)

   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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Other practice areas include forensic accounting and business appraisal for closely-held companies, estate valuations, gift tax planning, insurance consulting, loss advisory, economic damages, partnership/marital dissolution, and fair value financial reporting.
Mahmood has built eight companies and has been advising privately-held, closely-held companies on M&A and financing strategies for the past 25 years.
Because financial statement users of closely-held companies do not require all the in-depth disclosures needed by financial statement users of publicly traded companies, SFAS 132 allows accountants to provide reduced disclosures for closely-held companies.
 
 
 
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