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View Diary: Justice Breyer, what is a "closely held" company? (106 comments)

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  •  A "closely held corporation" (2+ / 0-)
    Recommended by:
    Sychotic1, KJG52

    means that all of the shareholders meet the criteria for owning shares in a non-public corporation.

    Some closely held companies (probably Hobby Lobby is in this category) do it out of non-sophistication.  Chrysler and GMAC got there because of their bankruptcy travails.  I'm curious about Cargill, and the Koch brothers do it because they don't need to raise capital on Wall Street and they likely have rather ugly financials.

    What it comes down to is that there's no real upper size on a "privately held" company, nor (assuming it's a c-corp) any real constraints on the capital structure or whether Mitt Romney's corp-people friends can buy in.

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