Closely Held Shares

Closely Held Shares
The shares in a publicly traded company held by a small number of shareholders, who are either directly affiliated with the company or management, or are majority stakeholder. Closely held shares are not publicly traded in the same manner as common shares. These companies may trade under light volume, since the majority of the shares can be held by a small group of shareholders. Companies that are closely held tend to be resistant to hostile takeovers, since the majority of shares are held within a small, interested group of shareholders.

Closely held companies may be more stable than other companies, since share prices are determined by the company's value and not by investor sentiment. Closely held companies may not have access to the same levels of working capital as widely traded corporations, because of low trading volume. However, many companies implement both common and closely held shares.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • closely held — close·ly held / klōs lē held/ adj: having most stock shares and corporate voting rights in the hands of a few shareholders Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. closely held …   Law dictionary

  • Management/closely held shares — Percentage of shares held by persons closely related to a company, as defined by the Securities and exchange commission. Part of these percentages often is included in Institutional Holdings making the combined total of these percentages over 100 …   Financial and business terms

  • management/closely held shares — Percentage of shares held by persons closely related to a company, as defined by the Securities and Exchange Commission. Part of these percentages often are included in institutional holdings making the combined total of these percentages over… …   Financial and business terms

  • Closely Held Stock — A company whose common shares are owned by one individual owner or by a small group of controlling stockholders. This is in contrast to a widely held stock, in which thousands or even millions of different investors may own shares in a large… …   Investment dictionary

  • closely held company — A company who has a small group of controlling shareholders. In contrast, a widely held firm has many shareholders. It is difficult or impossible to wage a proxy battle for any closely held firm. Bloomberg Financial Dictionary * * * closely held… …   Financial and business terms

  • Closely Held Corporation — Any company that has only a limited number of shareholders. Closely held corporation stock is publicly traded on occasion, but not on a regular basis. These entities differ from privately owned firms that issue stock that is not publicly traded.… …   Investment dictionary

  • closely held — adjective Date: 1946 having most stock shares and voting rights in the hands of a few < a closely held business > …   New Collegiate Dictionary

  • closely held — adjective : having most stock shares and voting rights in the hands of a few a closely held business …   Useful english dictionary

  • closely held — adjective Of a corporation or other business, owned by a small number of people, and not having shares of ownership sold via a stock exchange or other public market. Syn: privately held …   Wiktionary

  • closely held — /ˌkləυsli held/ adjective referring to shares in a company which are controlled by only a few shareholders …   Dictionary of banking and finance

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