Final answer:
Closely held stock refers to when a few individuals associated with the firm's management own the shares. This stands in contrast to publicly traded stock that is available for anyone to buy and sell on a stock exchange.
Step-by-step explanation:
When a corporation's shares are owned by a few individuals who are associated with the firm's management, we say that the stock is closely held. In this case, the ownership of the stock is concentrated among a small group of individuals rather than being publicly traded on a stock exchange. Examples of closely held companies include family-owned businesses or startups where the founders retain ownership control. Closely held shares are usually owned by the company's founders, family, and sometimes company employees. This contrasts with public companies, which are owned by a wide array of shareholders, each having only a small portion of the overall shares.