Two types of Corporations
The business world has always been evolving. During the early years, there exist only simple kinds of trade; then many centuries made these trades evolve thus becoming quite complicated markets; and now, it is full of large corporations that are owned by many people across the globe. There are two types of corporations the publicly owned corporations and the closely held corporations.
The first one, the publicly owned corporation, as it may be evident in it name, is open to the public. This indicates that the public could join in owning the company; they are allowed to buy shares of stocks which certify them as a co-owner of a business. Corporations who take this form are often large corporations who are in need of a large fund to be able to sustain its activities.
On the other hand, closely held corporations are contrary to the characteristics of publicly owned corporations. Unlike the first type of corporation, this type is not open to the public; there are no available shares of stock of this type of corporation in the stock market. This type of corporation is, unlike the publicly owned, most of the time small. These corporations do not require significant amounts in order to survive.
One of the determinants of whether it is advisable to take on with one’s business as publicly owned or closely held corporations is to relate the possible needed fund with the size of the corporation.