Closely-held for Dummies
adjective
What does Closely-held really mean?
Hey there! I'm really excited to help you understand the meaning of "closely-held." So, let's start by imagining a delicious cookie. You know how sometimes when you have a super special cookie, you don't want to share it with anyone else? It's just so good that you want to keep it all for yourself. Well, that's kind of what "closely-held" means, but instead of a cookie, we're talking about a company or business.
When we say a company is "closely-held," it means that the ownership of that company is held by only a small number of people. It's kind of like having a special club where only a few people can be members. These people usually know each other well, like close friends or family members. They have a strong connection to the company and are actively involved in running it.
Think of it this way - imagine you have a tree in your backyard. The tree is like the company, and the branches are the owners. In a closely-held company, there are only a few branches coming out of the tree because there are only a few owners. These owners have a lot of control and decision-making power in the company because they are very involved in how it operates. They might make all the important decisions about the company together, just like a group of friends deciding what game to play.
But wait, there's more! "Closely-held" can also refer to how shares or stocks of a company are held. You know how when you have a toy and you can decide whether to keep it for yourself or share it with others? Well, when a company is closely-held, the ownership of its shares or stocks is limited to only a small group of people. These shares are not available for the general public to buy or trade on the stock market. It's like having special toy bricks that only a few people can play with, while the rest watch from afar.
So, to sum it up, "closely-held" means that a company is owned and controlled by only a small group of people who have a strong connection to the company and are actively involved in running it. It's like having a special cookie or toy that you only want to share with a few close friends or family members. I hope that makes it easier for you to understand. If you have any more questions, feel free to ask!+
Revised and Fact checked by James Lee on 2023-10-28 05:30:02
Closely-held In a sentece
Learn how to use Closely-held inside a sentece
- A family business where only a few family members own and control the company is a closely-held business.
- When a small group of friends start a club and they are the only ones who make decisions, it is a closely-held club.
- If you have a secret and only share it with your closest friend, then you have a closely-held secret.
- Imagine having a diary that you write down your personal thoughts and only you can read it, that diary is your closely-held journal.
- When a group of people invest money together to buy a property and they all make decisions together, it is called a closely-held real estate investment.
Closely-held Similar Words
Words that similar to the original word, but are not synonyms.