Definition, Meaning & Synonyms

privately-held-corporation

Noun

/ˈpraɪvɪtli hɛld kɔrˈpɔrəˌʃən/

Definition

A privately-held corporation is a business entity that is owned by a small group of individuals and does not offer its shares to the public on stock exchanges.

Examples

Many startups begin as privately-held corporations.
Privately-held corporations can make decisions faster since they have fewer owners to consult.
In a privately-held corporation, the financial information is often not publicly disclosed.

Meaning

This type of corporation is often controlled by a limited number of shareholders, making it distinct from public companies that sell shares widely to the public.