privately held corporation
Học thuậtThân thiện
Definition
Noun: A privately held corporation is a type of business entity whose ownership is not publicly traded on a stock exchange. Its shares are held by a relatively small number of shareholders, such as the company's founders, management, employees, private investors, or families.
Usage
This term is used to describe a company's ownership structure, distinguishing it from a publicly traded company. It emphasizes that the company is not subject to the same regulatory reporting requirements and that its shares are not available for purchase by the general public on an open market.
Examples
- The tech startup remained a privately held corporation for over a decade before considering an initial public offering (IPO).
- As a privately held corporation, the family-owned business does not publish its financial statements for public scrutiny.
- Many venture capital firms invest exclusively in promising privately held corporations.
Advanced Usage
- "To be privately held": This is a common adjectival phrase derived from the noun.
- The manufacturer is privately held, so its valuation is not widely known.
Variants and Related Words
- Private company: A common synonym.
- Closely held corporation: A very similar term, sometimes used interchangeably, though it can imply an even smaller, tighter group of shareholders.
- Publicly traded corporation (Antonym): A company whose shares are traded freely on a stock exchange.
Synonyms
- Private company
- Closely held company
- Unlisted company
Related Phrases
- To go public: The process by which a privately held corporation becomes a publicly traded one through an IPO.
- After years of growth, the software firm decided to go public.
- To remain private: The decision of a company to stay as a privately held corporation.
- Despite numerous offers, the founders chose to keep the business private.
Noun
- a corporation owned by a few people; shares have no public market