Definition

1. Noun:
   • A corporation owned by a few people; shares have no public market: A "close corporation" is a type of business entity whose ownership is restricted to a small number of shareholders, often members of a family or a small group of associates. Its shares are not publicly traded on a stock exchange.

Usage Examples

• Noun:
  • The family business was structured as a close corporation to maintain control within the family.
  • Because it is a close corporation, its shares cannot be purchased by the general public.

Advanced Usage

• "to operate as a close corporation": to function under the legal and operational structure of a privately held corporation with a limited number of shareholders.
  • They chose to operate as a close corporation to avoid the reporting requirements of a public company.

Variants and Related Words

• Closed corporation (n): Another term for "close corporation," with the same meaning.

  • The firm is a closed corporation, so investment opportunities are limited to a select few.

• Privately held company (n): A broader term for a company whose shares are not publicly traded; a close corporation is a specific type of privately held company.

  • Many tech startups begin as privately held companies before considering an IPO.

Synonyms

• Private corporation: A corporation that does not offer its shares to the public.
• Closely held corporation: A corporation with a small number of shareholders, similar to a close corporation.

Related Phrases

• "closely held": Describes a corporation or business owned by a small number of people.
  • The business remains closely held, with all shares owned by the founders.

Related Idioms

Noun

1. a corporation owned by a few people; shares have no public market