closed corporation

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Related to Closely-Held Companies: closely held corporation, Privately held companies

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

References in periodicals archive ?
Even though the new standard sets forth a disclosure set for publicly traded companies and a separate, reduced disclosure set for closely-held companies, these smaller companies may provide the more detailed disclosures of publicly traded companies if they so desire.
and overseas companies ranging from Fortune 100 corporations to small, private and closely-held companies.
Perry-Smith serves a diverse list of clients in many industries including financial services, manufacturing, health care, education, SEC registered companies, retirement plans, and many closely-held companies.