closely held corporation

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Explanation of "Closely Held Corporation"

Definition:
A "closely held corporation" is a type of company where most of its stock (or shares) is owned by a small number of people. These people are usually the founders of the company or their family and friends. The shares of this corporation are not sold to the general public on the stock market, meaning they are not publicly traded. The owners often do not plan to sell their shares.

Usage Instructions:

• Use "closely held corporation" when talking about businesses that are privately owned and not open to many investors.
• It is often used in discussions about business structure, finance, or ownership.

Example:

• "The Smith Family owns a closely held corporation that produces organic foods. They control most of the shares and have no intention of selling them to the public."

Advanced Usage:

In legal and financial discussions, you might see this term used to differentiate between closely held corporations and publicly traded companies. For example: - "A closely held corporation might have different tax benefits compared to a publicly traded corporation."

Word Variants:

• Closely Held (adjective): Referring to how the shares are owned.
• Corporation (noun): A legal entity that is separate from its owners.

Different Meanings:

• Corporation: Can refer generally to any large company or group.
• Closely Held: Can also refer to other entities that are not publicly traded, such as limited partnerships.

Synonyms:

• Private corporation
• Family-owned business
• Small business (in some contexts)

Idioms and Phrasal Verbs:

While there are no specific idioms or phrasal verbs directly related to "closely held corporation," you may find these useful in business discussions: - "Keep it in the family": This idiom means to keep ownership or control of something within a family, similar to how closely held corporations often stay within a family. - "Buy in": This phrasal verb means to invest or become part of a business, which can be relevant when discussing shareholders in a closely held corporation.

Academic

Noun

1. stock is publicly traded but most is held by a few shareholders who have no plans to sell