Word: Privately Held Corporation
Definition: A privately held corporation is a type of business that is owned by a small group of people. Unlike public corporations, which sell shares to anyone on the stock market, a privately held corporation does not sell its shares to the general public. This means that only a few people or companies own the shares, and there is no public market for them.
Usage Instructions: You would use this term when talking about businesses that are not listed on the stock exchange. It's important to remember that because they are privately held, they have different rules and regulations compared to public companies.
Example: "Apple was a privately held corporation before it went public in 1980."
Advanced Usage: In discussions about business ownership, investments, or corporate structure, you might hear about the advantages and disadvantages of being a privately held corporation, such as more control over business decisions but less access to capital.
Word Variants: - Privately Held: This can be used as an adjective. For example, "They are a privately held company." - Privately Owned Corporation: This is another way to say the same thing.
Different Meanings: - The term "corporation" can also refer to any large company or group of people authorized to act as a single entity (legally recognized). - "Privately held" might describe other things, like "privately held information," which refers to information not shared with the public.
Synonyms: - Private company - Closely held corporation
Idioms and Phrasal Verbs: - There aren't specific idioms or phrasal verbs that directly relate to "privately held corporation," but you might encounter phrases like "go public" (when a privately held corporation starts selling shares to the public).
Summary: A privately held corporation is a business owned by a small group, with no public trading of its shares.