Question

Majority of ________are said to be closely held or privately held which means that no ready market exists for the trading of shares
(A) business houses
(B) corporations
(C) organisations
(D) trading houses​

Answer 1

Answer:

What Is a Closely Held Corporation?

A closely held corporation is any company that has only a limited number of shareholders. Often, its stock is exchanged only infrequently but which are often listed on public exchanges, although they often also trade on over-the-counter (OTC) exchanges.

These entities differ from privately owned firms that have stock that is not publicly traded on an exchange (neither listed nor OTC). Those who own shares of closely held corporations should consult a financial planner with expertise in the tax and estate ramifications that come with this type of stock because questions of liquidity, insider status, and majority stakeholder responsibilities may come into play.