Closely Held Shares

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Closely Held Shares

Shares in a publicly-traded company in which a small group of shareholders control the majority of the shares. These majority shareholders tend to hold on to the company's stock, and, as such, only minority shares are traded, leading to light trade volume. Closely held companies 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, closely held companies do not have access to as much working capital as corporations with more shareholders.
References in periodicals archive ?
The foundation, for example, already offers donor-advised funds, and expects to launch new services that might include accepting or transferring closely-held stock and gifts for real estate, she said.
Appraisal may be needed for some closely-held stock to determine appropriate value of tax deduction.
6 Question #6: A client donated closely-held stock or real estate to his private foundation or charitable remainder trust.
Conversely, Lloyds associations, closely-held stock companies, and (to a lesser extent) widely-held stock companies have a comparative advantage in writing insurance for which managerial discretion is more important.
Similar discounts are available for lack of marketability of the closely-held stock.
This greater percentage of illiquid assets - such as investment real estate, closely-held stock, trusts, life insurance and annuities - adds greater complexity to investment portfolios, often requiring the kinds of specialized wealth-management advice and services Merrill Lynch advisors are well-equipped to provide.
In the past, the Tax Court has repeatedly held that no reduction in the value of closely-held stock to reflect potential capital gains tax is warranted where a liquidation or a sale of the corporation's assets is purely speculative.
We argue that the analysis of managerial control problems of mutuals also applies to stock companies owned by mutuals, and that the incentives associated with Lloyd's are similar to those for closely-held stock companies.
Volkman is a Senior Member of the American Society of Appraisers and has more than 20 years of experience in the valuation of closely-held stock interests.
SDIRA Services supports a wide range of alternative investment vehicles within its Traditional, Roth, SEP and SIMPLE IRA accounts, including: real estate, trust deeds, mortgage notes, precious metals, promissory notes, closely-held stocks, private limited partnerships, limited liability companies and more.
SDIRA Services specializes in allowing a wide range of alternative investment vehicles within its Traditional, Roth, SEP and SIMPLE IRA accounts, which include: real estate, trust deeds, mortgages, tax liens, precious metals, promissory notes, closely-held stocks, private limited partnerships, limited liability companies and more.
According to the ruling, "Potential future income is a major factor in many valuations of closely-held stocks, and all information concerning past income which will be helpful in predicting the future should be secured .