closely held corporation
- noun
- /ˈkloʊsli hɛld kɔːrˈpɔːreɪʃən/
- Specialized
:
sociedad anónima cerrada
- In a closely held corporation, the shares are not available for public trading, making them less liquid.
- shareholders of closely held corporation
Examples
-
Unlike liquid investments in public corporations, closely held corporations have illiquid investments that shareholders cannot easily sell to other investors.
Academic text (2017) -
Another difference between closely held companies and public companies is the propensity for shareholders in closely held corporations to have conflicts of interest.
Academic text (2017) -
Review related returns (such as those of corporate officers in a closely held corporation).
Academic text (1996) -
Minority shareholders of closely held corporations find themselves "locked in." 63
Academic text (2017) -
Lastly, the personal nature of closely held corporations drives disputes among shareholders.
Academic text (2017) -
Therefore, investors in closely held corporations are more likely to rely on family relationships and friendships than legal protections.
Academic text (2017) -
The biggest difference between closely held corporations and large, publicly traded corporations is that investments in the stock of closely held corporations are illiquid.
Academic text (2017) -
Over the last few years, shareholder oppression suits in closely held corporations have increased, and commentators anticipate the number will continue to grow.
Academic text (2017) -
Additionally, the investments of shareholders in closely held corporations are likely to be a larger percentage of their total wealth in comparison to institutional investors in publicly traded corporations.
Academic text (2017) -
Furthermore, the nature of closely held corporations complicates the search for efficient and equitable solutions to shareholder disputes.
Academic text (2017)
Synonyms
8
3.7
A company owned by a small group whose shares are not sold to the public
A company that a small group of people own and run and whose shares are not sold to the public
A company whose shares are owned by a small group and not sold to the public
A company owned by a few people whose shares are not sold on public stock markets
How Closely Held
- Specialized
- Specialized
8
3.7
24
2.7
Surface Forms
Morphology
closely + hold + corporation
The phrase is partly compositional: a learner who knows 'hold/held' (to possess) and 'closely' (nearly/intimately) can infer that the corporation is 'owned or controlled by a small/close group'. However, the full business-specific sense (limited public trading, shareholder structure) is jargon-like and not fully predictable from the parts at B1 level, so prior exposure or domain knowledge is usually required.
Etymology
Closely held corporation comes from the simple image of a company kept tightly by a small group: closely held shows the owners keep the business near them, and corporation means the company. So it now means a company owned by 'few owners' with shares 'not sold' on the public market.