Definition

1. Noun:
   • A private corporation is a type of business organization that is owned by a small number of individuals or entities. Its ownership shares are not traded on a public stock exchange and are not available for purchase by the general public.

Usage

• The term private corporation is used to describe a company whose ownership is restricted and not publicly traded. This is a key legal and financial classification.
• It is often contrasted with a "public corporation" or "publicly traded company."

Examples

• Noun:
  • The family decided to keep their business as a private corporation to maintain full control over its operations.
  • Shares of a private corporation are typically sold through private placements.
  • Many startups begin as private corporations before considering an initial public offering (IPO).

Advanced Usage

• "Closely held corporation": This is a common synonym, emphasizing the small, tight-knit group of shareholders.
  • As a closely held corporation, all major decisions require the unanimous vote of the three founding partners.
• The concept is central to discussions of corporate governance, fundraising, and regulatory requirements, which differ significantly from those of public companies.

Variants and Related Words

• Privately held company: A near-identical term often used interchangeably with private corporation.
• Close corporation: A legal term in some jurisdictions for a specific type of private corporation with a very limited number of shareholders and less formal operating procedures.

Synonyms

• Closely held corporation
• Privately held company
• Close corporation (in specific legal contexts)

Antonyms

• Public corporation
• Publicly traded company
• Publicly held corporation

Noun

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