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Privately Held Corporation


Privately held corporation or closely held corporation is a company, which doesn’t have its shares listed on the stock exchange. If a corporation is closely held it not necessary means that it is small business. There are many huge enterprises that are not publicly owned and belong to some families or persons. Usually owners of such companies don’t want to go public and loose a full control of the business, report every decisions and full financial statements regularly. 


The advantages of non-public (closely held) corporation:

  • Company’s shareholders have full control of the management.
  • It is easier to protect valuable information from competitors.
  • There are no fees for listing.
  • Company may save on investor relations employees.


The disadvantages of non-public corporation:

  • It is easier to raise capital for public companies.
  • Listed companies have higher value than unlisted.
  • Stocks of listed companies have higher liquidity.
  • Listed companies are more transparent and the transparency builds trust among clients and employees. 



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