Closely Held Stock


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.

BREAKING DOWN '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.

  1. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  2. Effective Net Worth

    The shareholders' equity of a corporation, plus subordinated ...
  3. Ordinary Shares

    Any shares that are not preferred shares and do not have any ...
  4. Common Stock

    A security that represents ownership in a corporation. Holders ...
  5. Wholly Owned Subsidiary

    A company whose common stock is 100% owned by another company, ...
  6. Common Shareholder

    An individual, business or institution that holds common shares ...
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