Closely Held Stock

AAA

DEFINITION of '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 company.

INVESTOPEDIA EXPLAINS 'Closely Held Stock'

Closely held stock is typically not publicly traded on exchanges because the small number of owners rarely sell their shares. A common way that a closely held stock is created is when an entrepreneur starts and incorporates his or her own business, but retains ownership of all the company's outstanding shares.

RELATED TERMS
  1. Effective Net Worth

    The shareholders' equity of a corporation, plus subordinated ...
  2. Wholly Owned Subsidiary

    A company whose common stock is 100% owned by another company, ...
  3. Common Stock

    A security that represents ownership in a corporation. Holders ...
  4. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  5. Common Shareholder

    An individual, business or institution that holds common shares ...
  6. Ordinary Shares

    Any shares that are not preferred shares and do not have any ...
Related Articles
  1. Investing Basics

    Stock Basics Tutorial

  2. Bonds & Fixed Income

    A Primer On Preferred Stocks

  3. Investing Basics

    Knowing Your Rights As A Shareholder

  4. Options & Futures

    20 Investments You Should Know

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center