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.

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Management/closely held shares

References in periodicals archive ?

Uber Technologies has agreed to pay Waymo approximately $245 million in closely held stock, to put an end to a high-stakes conflict between the two firms.

Uber agrees to $245m payout to settle Waymo dispute

Although publicly traded stocks have the most widely diffuse ownership and have been mostly widely studied in literature, the most popular firm structure in the United States is the closely held stock firm (Nagar, Petroni, and Wolfenzon, 2011).

Organizational form, ownership structure, and CEO turnover: evidence from the property-casualty insurance industry

This can be closely held stock or equity in a private company, as well as publicly traded stock or even units in a Family Limited Partnership.

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FNC also provides a trading platform for closely held stock in ethanol and sugar beet facilities through an entity called FNC Ag Stock LLC.

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Together, publicly traded stock and closely held stock accounted for 35.

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This article examines the pertinent factors to consider and the methods used in valuing closely held stock.

Key person value adjustments for closely held corporations: review and analysis of discounts for estate and gift tax purposes

Those responsible for closely held stock valuations are most likely to feel some pain in the short run.

Interests Bearing

If you have real estate or closely held stock in a self-directed IRA, you have to have an independent third-party valuation," said Cindy Conger, a Little Rock investment adviser.

IRA rules spur new strategy: IRS crackdown prompts annual valuations

growth stocks, closely held stock, or real estate).

NIMCRUT

Last month, I finally connected with a wealthy prospective client who received over $30 million from the sale of his minority share of closely held stock.

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Many of our clients own land, closely held stock or other significant, appreciating assets.

For large estates, consider grantor retained annuity trusts

Gifts of publicly traded securities or closely held stock fall within specific exceptions to this general rule.