Compare and contrast publicly held and closely held corporations

What will be an ideal response?


Publicly held corporations have many shareholders. Often, they are large corporations with hundreds or thousands of shareholders, and their shares are traded on organized securities markets. The shareholders rarely participate in the management of such corporations.
A closely held corporation, on the other hand, is one whose shares are owned by a few shareholders who are often family members, relatives, or friends. Frequently, the shareholders are involved in the management of the corporation. The shareholders sometimes enter into buy-and-sell agreements that prevent outsiders from becoming shareholders.

Business

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