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

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For instance, the grantor may restrict the trustee's ability to invest in hard-to-value assets, such as closely-held stock.

closely-held stock where the CRT owns more than 49% of the combined voting power of all classes of stock; or

Appendix C: charitable remainder trust (CRT) administration

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.

Internet advocacy: foundation aims to spur online activism

Appraisal may be needed for some closely-held stock to determine appropriate value of tax deduction.

What is charitable giving? (Foundation)

6 Question #6: A client donated closely-held stock or real estate to his private foundation or charitable remainder trust.

Ten Frequently Asked Questions About Private Foundations

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.

8) We omit the Lloyds dummy variable from regressions 1, 2, and 3 and both the Lloyds and closely-held stock dummy variables from regressions 4, 5, and 6 to avoid singularity in the independent variable matrices.

On the choice of insurance distribution systems

Similar discounts are available for lack of marketability of the closely-held stock.

Family business consulting

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.

Merrill Lynch Corrects and Replaces Previous Announcement Headlined: Focus On Wealth Management Addresses Affluent Investors' Need for Advice; BW2672-6/19, NY-MERRILL-LYNCH

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.

The valuation discount for potential capital gains tax

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.

Managerial discretion, regulation, and stock insurer ownership structure

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 .