Closely held stock

Closely held stock,

Definition of Closely held stock:

  1. 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 the majority of the company's outstanding shares.

  2. A closely-held stock is a circumstance wherein a company’s common shares are predominantly 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.

  3. Shares held by a few individuals, a family, or a small group.

Meaning of Closely held stock & Closely held stock Definition