How are closely held corporations different from publicly tr

How are closely held corporations different from publicly traded corporations?

Corporations may have one or more shareholders or owners. The type of corporation determines the number of stockholders, the way stocks are traded, and the requirements stated by the Secretary of State (for each state) and the Internal Revenue Service code.

please describe the differences between the two types of corporations.

300 words with a minimum of two sources cited

Solution

Closely-held or Privately companies are characterized by to be owned by the corporation\'s founders, their executive level or a group of private investors, they are different of public companies, which have sold a part of their shares to the public, through a public offer of stocks, having property rights over corporation\'s assets and profits.

The private character turns about public disclosure. Like private companies do not trade stock on a stock markets, they are not mandatory to reveal their financial information.

On the other hand, public companies are trading on a stock exchange, Securities and Exchange Commission (SEC) demands to file quarterly earnings (and other issues) reports. This information must be made available to shareholders and the public.

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