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What is the difference between a closely held corporation and a publicly held corporation?
A closely held corporation does not have its stock available for the public to buy and be a part of. Stocks in these kind of companies are kept in small circles of people related to the company's owners.
A publicly held corporation trades its stock over a stock market and anyone (with sufficient funds) is able to buy, trade, and sell that company's stocks.
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Why would closely held corporations choose to be publicly traded?
To raise capital just like any other corporation.
Anyone can invest in a closely held corporation?
yes
What does the term 'closely held corporation' mean?
Closely held corporation is referred to a company whose shareholders are of a limited number. Its stock is traded on occasion but not on a regular basis.
What are the advantages of corporation?
A corporation is an institution that is granted a charter recognizing it as a separate legal entity having its own privileges, and liabilities distinct from those of its members. Advantages Corporations do have some advantages over publicly traded corporations. A small, closely held company can often make company-changing decisions much more rapidly than a publicly traded company. A publicly traded company is also at the mercy of the market, having capital flow in and out based not only on what the company is doing but the market and even what the competitors are doing. Publicly traded companies also have advantages over their closely held counterparts. Publicly traded companies often have more working capital and can delegate debt throughout all shareholders. This means that people invested in a publicly traded company will each take a much smaller hit to their own capital as opposed to those involved with a closely held corporation. Publicly traded companies though suffer from this exact advantage. A closely held corporation can often voluntarily take a hit to profit with little to no repercussions (as long as it is not a sustained loss). A publicly traded company though often comes under extreme scrutiny if profit and growth are not evident to stock holders, thus stock holders may sell, further damaging the company. Often this blow is enough to make a small public company fail. Another advantage is that the assets and structure of the corporation may continue beyond the lifetimes of its shareholders and bondholders. This allows stability and the accumulation of capital, which is thus available for investment in larger and longer-lasting projects than if the corporate assets were subject to dissolution and distribution. This was also important in medieval times, when land donated to the Church (a corporation) would not generate the feudal fees that a lord could claim upon a landholder's death. In this regard, see Statute of Mortmain. (However a corporation can be dissolved by a government authority, putting an end to its existence as a legal entity. But this usually only happens if the company breaks the law, e.g. fails to meet annual filing requirements, or in certain circumstances if the company requests dissolution.)
What type of corporation is more likely to be a shareholder wealth maximizer - one with wide ownership and no owners directly involved in the firm's management or one that is closely held?
A corporation with wide ownership and no owners directly involved in the firm's management is more likely to be a shareholder wealth maximizer. This structure typically aligns the interests of diverse shareholders with the firm's performance, as management is incentivized to enhance profitability and stock value to satisfy a broad base of investors. In contrast, a closely held corporation may prioritize the interests of a few owners, which can lead to decisions that do not necessarily maximize shareholder wealth.
What type of corporation is microsoft.. publicly held or closely held?
Microsoft Corporation is a publicly-held corporation. Its shared are traded on the NASDAQ exchange under the symbol MSFT.
What is the difference between a closely held corporation and a public corporation?
A closely held corporation is one whose shares are owned by a few shareholders who are often family members, relatives, or friends. These "close" shareholders are often involved in the direct management of the corporation and sometimes enter into buy-and-sell agreements that prevent outsiders becoming shareholders. Conversely, publicly held corporations often have many shareholders, for which shares are traded on organized securities markets. These shareholders rarely participate in management activities.
Why would closely held corporations choose to be publicly traded?
To raise capital just like any other corporation.
Anyone can invest in a closely held corporation?
yes
What does the term 'closely held corporation' mean?
Closely held corporation is referred to a company whose shareholders are of a limited number. Its stock is traded on occasion but not on a regular basis.
What is the difference between a German Spitz and a Pomeranian?
Yes, the Pomeranian breed is closely related to the German Spitz.
What is closely related to the presidency of Herbert Hoover?
reconstruction finance corporation
What are the advantages of corporation?
A corporation is an institution that is granted a charter recognizing it as a separate legal entity having its own privileges, and liabilities distinct from those of its members. Advantages Corporations do have some advantages over publicly traded corporations. A small, closely held company can often make company-changing decisions much more rapidly than a publicly traded company. A publicly traded company is also at the mercy of the market, having capital flow in and out based not only on what the company is doing but the market and even what the competitors are doing. Publicly traded companies also have advantages over their closely held counterparts. Publicly traded companies often have more working capital and can delegate debt throughout all shareholders. This means that people invested in a publicly traded company will each take a much smaller hit to their own capital as opposed to those involved with a closely held corporation. Publicly traded companies though suffer from this exact advantage. A closely held corporation can often voluntarily take a hit to profit with little to no repercussions (as long as it is not a sustained loss). A publicly traded company though often comes under extreme scrutiny if profit and growth are not evident to stock holders, thus stock holders may sell, further damaging the company. Often this blow is enough to make a small public company fail. Another advantage is that the assets and structure of the corporation may continue beyond the lifetimes of its shareholders and bondholders. This allows stability and the accumulation of capital, which is thus available for investment in larger and longer-lasting projects than if the corporate assets were subject to dissolution and distribution. This was also important in medieval times, when land donated to the Church (a corporation) would not generate the feudal fees that a lord could claim upon a landholder's death. In this regard, see Statute of Mortmain. (However a corporation can be dissolved by a government authority, putting an end to its existence as a legal entity. But this usually only happens if the company breaks the law, e.g. fails to meet annual filing requirements, or in certain circumstances if the company requests dissolution.)
What most closely related to the presidency of Herbert Hoover?
reconstruction finance corporation
What is a business called that is owned by stockholders?
public answer #2 Public implies that the stock of the company is available to the general public on an exchange somewhere. Many companies are privately or closely held and a very small group own the stock its not for sale publicly. This is common in family businesses, family farms and other businesses. If a company chooses to be publicly traded thee are a number of reporting and regulatory requirements that must meet.
Is there a difference between a monkey and a chimp?
Yes, there is a difference between monkeys and chimps. Monkeys have tails, while chimps do not. Chimps are also more closely related to humans than monkeys are.
What act is closely related to the Glass-Steagall Act?
Federal Deposit Insurance Corporation
