privately held company

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Privately Held Company

A company in which a small group of shareholders control all of the shares. These shareholders tend to hold onto the company's stock and, in any case, no shares are publicly traded. Privately held companies are, by their nature, impervious 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, privately held companies do not have access to as much working capital as corporations with more shareholders have. See also: Closely Held.

privately held company

A firm whose shares are held within a relatively small circle of owners and are not traded publicly.
References in periodicals archive ?
However, hundreds of conversations later with private company interests, and with a couple of dozen private financing deals under my belt, it is very clear to me that private company investment and credit decision-makers use different and more widespread criteria in their decision-making than do either public company equity analysts seeking to determine values of public company stocks, or large credit rating agencies trying to rank credit worthiness by use of comparables available only from the controlled-release environment of public companies.
This framework assists the small and medium-sized private company to prepare financial statements that clearly and concisely report what a company owns, owes, and its cash flows.
What types of liabilities can a private company director face, and how can this be mitigated?
A significant need to communicate developing and newly finalized standards to private company managers, small business owners, and preparers
Under FAF's proposal, the PCSIC chairman, who would be selected and appointed by the FAF Trustees, would be a FASB member with substantial experience in private company reporting.
Why not develop private company reporting standards from scratch rather than base them on GAAP?
While a private company may never see a billion dollar settlement like those experienced by Enron or Worldcom, private companies cannot afford to ignore the importance of this issue to officers and directors--both inside and outside--as well as the business itself.
Another unique private company wrinkle is "phantom stock," a grant of the right to profit from appreciation of the company's profits or sales, with a fixed exercise date and a formula for calculation.
The recommendations contained in the Invitation to Comment reflect what stakeholders told the FASB staff about their experiences using, preparing, auditing, reviewing, and compiling private company financial statements.
The primary concern of the Panel is that there are an increasing number of private company financial statements that are prepared in accordance with an Other Comprehensive Basis of Accounting (OCBOA), or the financial statements contain departures or exceptions to U.
In late March, members of FEI's Committee on Private Company - Policy were in Washington, D.
Private company financial statements, in many ways, are intended to satisfy informational needs different from those of public company financial statements.