Closely held


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Related to Closely held: Closely held company

Closely held

A corporation whose voting stock is owned by only a few shareholders.

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.

Closely held.

A closely held corporation is one in which a handful of investors, often the people who founded the company, members of the founders' families, or sometimes the current management team, own a majority of the outstanding stock.

References in periodicals archive ?
For more information: Harsha Desai, Director, Loyola Center for Closely Held Firms, the Sellinger School, 4501 N.
People" issues in a divorce arise when one or both of the divorcing parties manage a closely held business or, perhaps, neither party plays a part.
CPC tracks developments affecting private and closely held companies, promotes information exchange among interested members and oversees the development of programs, products and services that address its constituents.
Taxpayers should be sure to provide evidence of stock valuation in closely held corporations based on the worth of the underlying property.
For instance, if investors or lenders will use the valuation as a basis for determining the value of equity shares in a closely held business, recognize that in most states these parties will likely have the right to sue the firm that prepared the BV if a subsequent valuation dispute arises.
The company operates 11 banking center locations throughout the greater Chicago metropolitan area and provides a full range of financial services to closely held businesses and the people who own and manage them.
This control conies at a price, however; such a foundation cannot accept gifts of closely held stock.
In cases involving spouses and their closely held corporations, the courts have held conflicting opinions on the answer to this question.
Ben Bisconti, Managing Director of Accel-KKR, said, "We are pleased with our investment in Saber Consulting, which reflects our focus on well-run small and mid-sized family or closely held technology companies that are located outside of traditional technology corridors, and are well positioned for growth.
1042, if shareholders of a closely held C corporation who have held their stock for at least three years, sell that stock to an ESOP, they call defer gain recognition on the sale in certain circumstances.
CPAs who work with estates know that, if a decedent owned stock of a closely held business at his or her death, the value of the stock generally must be determined if an estate tax return will be filed.
Our expertise in mergers and acquisitions, business valuation, and financial and fairness opinions has been gained through the performance of hundreds of engagements for closely held businesses, middle market companies, and "Fortune 1000" clients.