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. Preferred Stock

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

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

    Any shares that are not preferred shares and do not have any ...
  5. Incorporation

    The process of legally declaring a corporate entity as separate ...
  6. Wholly Owned Subsidiary

    A company whose common stock is 100% owned by another company, ...
Related Articles
  1. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  2. A Primer On Preferred Stocks
    Bonds & Fixed Income

    A Primer On Preferred Stocks

  3. Knowing Your Rights As A Shareholder
    Investing Basics

    Knowing Your Rights As A Shareholder

  4. 20 Investments You Should Know
    Options & Futures

    20 Investments You Should Know

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center