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I have my presentation on "SEC reporting on privately held companies. malain yo topic nai kichak khalko paryo..koi accounting expert haru cha vane yaso hint ani ideas post garide i would deeply appreciate.......

I have been tryin to solicit the info on the topic but m not able to locate properly.  I mean i couldn't gether enough information for my presentation.

Kasaili tha cha kunai source haru .. i would appreciate if you guys would post ...

thanks

 

Privately held companies are not required any SEC reporting because they don't  trade stock on a stock exchange

Try the Sec website and the journal of accountancy website......

Googled it and found:

 

Securities law requires private companies that exceed a certain level
of stock distribution to file quarterly financial data with federal
regulators.

Here's a paragraph from the SEC website:
Corporate Reporting

Companies with more than $10 million in assets whose securities are
held by more than 500 owners must file annual and other periodic
reports. These reports are available to the public through the SEC's
EDGAR database.

next time i will register a chick name and ask for help with my home work.

U might have that narrow mind, I didn't even see the username in this case.Check my posts y'day and day b4 to see how many others I helped or tried to help atleast.

But I don't blame u, I have noticed that if a user uses a chick name, the volume of replies and the manner of replies improve signifcantly. Bokaz.

 

of course you didn't...you are in it for the social work as i take it  ...ur my hero i shall nominate and vote for you for the sajha person of the year award

Talk about discrimination, Kiddo!!!

Haha newlynew, just sharing the fact brother.

CyLegend, please register yourself on my fan club. My publicist will contact you for details.

how much are you paying me to be your fan? no payn no fayn

i agree with kiddo. normally private companies are not accounted for SEC. this was mainly for public companies.

A public company or publicly traded company is a company that has permission to offer its registered securities (stock, bonds, etc.) for sale to the general public, typically through a stock exchange, or occasionally a company whose stock is traded over the counter (OTC) via market makers who use non-exchange quotation services.

from wikipedia

 Securities of a public company

Usually, the securities of a publicly traded company are owned by many investors while the shares of a privately held company are owned by relatively few shareholders. A company with many shareholders is not necessarily a publicly traded company. In the United States, in some instances, companies with over 500 shareholders may be required to report under the Securities Exchange Act of 1934; companies that report under the 1934 Act are generally deemed public companies. The first company to issue shares is thought to be the Dutch East India Company in 1601.

 Advantages

It is able to raise funds and capital through the sale of its securities. This is the reason publicly traded corporations are important: prior to their existence, it was very difficult to obtain large amounts of capital for private enterprises.

In addition to being able to easily raise capital, publicly traded companies may issue their securities as compensation for those that provide services to the company, such as their directors, officers, and employees.

In comparison, privately held companies may also issue their securities as compensation for services, but the recipients of those securities often have difficulty selling them on the open market. Securities from a publicly traded company typically have an established fair market value at any given time as determined by the price the security is sold for on the stock exchange where the security is traded.

The financial media and city analysts will be able to access additional information about the business.

[edit] Disadvantages

Privately held companies have several advantages over publicly traded companies. A privately held company has no requirement to publicly disclose much, if any financial information; such information could be useful to competitors. For example, publicly traded companies in the United States are required by the SEC to submit an annual Form 10-K containing a comprehensive detail of a company's performance. Privately held companies do not file form 10-Ks; they leak less information to competitors, and they tend to be under less pressure to meet quarterly projections for sales and profits.

Publicly traded companies are also required to spend more for certified public accountants and other bureaucratic paperwork required of all publicly traded companies under government regulations. For example, the Sarbanes-Oxley Act in the United States does not apply to privately held companies. The money and income of the owners remains relatively unknown by the public.

[edit] Stockholders

In the US, the Securities and Exchange Commission requires that firms whose stock is traded publicly report their major stockholders each year.^[1] The reports identify all institutional shareholders (primarily, firms owning stock in other companies), all company officials who own shares in their firm, and any individual or institution owning more than 5% of the firm’s stock.^[1]

[edit] General Trend

The norm is for new companies, which are typically small, to be privately held. After a number of years, if a company has grown significantly and is profitable, or has promising prospects, there is often an initial public offering which converts the privately held company into a publicly traded company or an acquisition of a company by publicly traded company.

Yet, some companies choose to remain privately held for a long period of time after maturity into a profitable company. Investment banking firm Goldman Sachs and shipping services provider United Parcel Service (UPS) are examples of companies which remained privately held for many years after maturing into profitable companies.

[edit] Privatization

Less common, but not unknown, is for a public company to buy out its shareholders and become private. This is typically done through a leveraged buyout and occurs when the buyers believe the securities have been undervalued by investors. Publicly held companies can also become privately held by having all of their shares purchased by an individual or small group of investors, or by another company that is privately held.

In addition, one publicly traded company may be purchased by one or more publicly traded company(ies), with the bought-out company either becoming a subsidiary or joint venture of the purchaser(s) or ceasing to exist as a separate entity, its former shareholders receiving either cash, shares in the purchasing company or a combination of both. When the compensation in question is primarily shares then the deal is often considered a merger. Subsidiaries and joint ventures can also be created de novo - this often happens in the financial sector. Subsidiaries and joint ventures of publicly traded companies are not generally considered to be privately held companies (even though they themselves are not publicly traded) and are generally subject to the same reporting requirements as publicly traded companies. Finally, shares in subsidiaries and joint ventures can be (re)-offered to the public at any time - firms that are sold in this manner are called spin-outs.

Most industrialized jurisdictions have enacted laws and regulations that detail the steps that prospective owners (public or private) must undertake if they wish to take over a publicly traded corporation. This often entails the would-be buyer(s) making a formal offer for each share of the company to shareholders. Normally some form of supermajority is required for this sort of the offer to be approved, but once it happens then usually all shareholders are compelled to sell at the agreed-upon price and the company either becomes a subsidiary, ceases to exist or becomes privately held.

[edit] Trading and valuation

The shares of a publicly traded company are often traded on a stock exchange. The value or "size" of a publicly traded company is called its market capitalization, a term which is often shortened to "market cap". This is calculated as the number of shares outstanding (as opposed to authorized but not necessarily issued) times the price per share. For example, a company with two million shares outstanding and a price per share of US$40 would have a market capitalization of US$80 million. However, a company's market capitalization should not be confused with the fair market value of the company as a whole since the price per share are influenced by other factors such as the volume of shares traded. Low trading volume can cause artificially low prices for securities, due to investors being apprehensive of investing in a company they perceive as possibly lacking liquidity.

For example, if all shareholders were to simultaneously try to sell their shares in the open market, this would immediately create downward pressure on the price for which the share is traded unless there were an equal number of buyers willing to purchase the security at the price the sellers demand. So, sellers would have to either reduce their price or choose not to sell. Thus, the number of trades in a given period of time, commonly referred to as the "volume" is important when determining how well a company's market capitalization reflects true fair market value of the company as a whole. The higher the volume, the more the fair market value of the company is likely to be reflected by its market capitalization.

Another example of the impact of volume on the accuracy of market capitalization is when a company has little or no trading activity and the market price is simply the price at which the most recent trade took place, which could be days or weeks ago. This occurs when there are no buyers willing to purchase the securities at the price being offered by the sellers and there are no sellers willing to sell at the price the buyers are willing to pay. While this is rare when the company is traded on a major stock exchange, it is not uncommon when shares are traded over-the-counter (OTC). Since individual buyers and sellers need to incorporate news about the company into their purchasing decisions, a security with an imbalance of buyers or sellers may not feel the full effects of recent news.

A privately held company or close corporation is a business company owned either by non-governmental organizations or by a relatively small number of holders who do not trade the stock publicly on the stock market. Less ambiguous terms for a privately held company are unquoted company and unlisted company.

Though less visible than their publicly traded counterparts, private companies have a major importance in the world's economy. In 2008, the 441 largest private companies in the USA accounted for $1.8 trillion in revenues and employed 6.2 million people, according to Forbes. In 2005, the 339 companies on Forbes' survey of closely held U.S. businesses sold a trillion dollars' worth of goods and services and employed 4 million people. In 2004, the Forbes' count of privately held U.S. businesses with at least $1 billion in revenue was 305.^[1]

Koch Industries, Bechtel, Cargill, Chrysler, PricewaterhouseCoopers, Pilot Travel Centers, Ernst & Young, Publix, Deloitte Touche Tohmatsu and Mars are among the largest privately held companies in the United States. IKEA, Victorinox, and Bosch are examples of Europe's largest privately held companies.

Contents [hide] 1 State ownership vs. private ownership 2 Ownership of stock 3 Form of organization 4 Reporting obligations and restrictions 5 India 6 See also 7 References 8 External links

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[edit] State ownership vs. private ownership

In the broadest sense, the term private corporation refers to any business not owned by the state. This usage is often found in former Communist countries to differentiate from former state-owned enterprises,^{[citation needed]} but it may be used anywhere when contrasting to a state-owned company.

In the United States, the term privately held company is more often used to describe for-profit enterprises whose shares are not traded on the stock market.

[edit] Ownership of stock

In countries with public trading markets, a privately held business company is generally taken to mean one whose ownership shares or interests are not publicly traded. Often, privately held companies are owned by the company founders and/or their families and heirs or by a small group of investors. Sometimes employees also hold shares of private companies. Most small businesses are privately held. In the United States a few notable large corporations, such as Koch Industries, HEB, Cargill, Swagelok, Wegmans, Kohler, Mars, and Bechtel are privately held, as are large professional services firms, such as accounting and law firms.

Subsidiaries and joint ventures of publicly traded companies (for example, General Motors' Saturn Corporation), unless shares in the subsidiary itself are traded directly, share characteristics of both privately held companies and publicly traded companies. Such companies are usually subject to the same reporting requirements as privately held companies, but their assets, liabilities and activities are also included in the reports of their parent companies, as required by the accountancy and securities industry rules relating to groups of companies.

[edit] Form of organization

See also: Types of business entity

Private companies may be called corporations, limited companies, limited liability companies, or other names, depending on where and how they are organized. In the United States, but not generally in the United Kingdom, the term is also extended to partnerships, sole proprietorships or business trusts. Each of these categories may have additional requirements and restrictions that may impact reporting requirements, income tax liabilities, governmental obligations, employee relations, marketing opportunities, and other business decisions.

In many countries, there are forms of organization which are restricted to and are commonly used by private companies, for example the private company limited by shares in the United Kingdom (abbreviated Ltd) and the proprietary limited company (abbreviated Pty Ltd) in Australia.

[edit] Reporting obligations and restrictions

Privately held companies generally have fewer or less comprehensive reporting requirements for transparency, via annual reports, etc. than do publicly traded companies. For example, in the United States, unlike in Europe, privately held companies are not generally required to publish their financial statements. In Australia, Part 2E of the Corporations Act 2001 requires that publicly traded companies file certain documents relating to their annual general meeting with the Australian Securities and Investments Commission, while there is no similar requirement for privately held companies.

Privately held companies also sometimes have restrictions on how many shareholders they may have. For example, the U.S. Securities Exchange Act of 1934, section 12(g), limits a privately held company, generally, to fewer than 500 shareholders, and the U.S. Investment Company Act of 1940, requires registration of investment companies that have more than 100 holders. In Australia, section 113 of the Corporations Act 2001 limits a privately held company to fifty non-employee shareholders.

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what a nice job of cut n paste. you deserve to be the sajha person of the year over kiddo. i am voting for you for your excellent public service kukur.

Cy whatever, suckle on my balls, might help you grow up, kid.

is that how ur parents help you grow up? experienced eh?

Nope, that was how I trained your parents...go ask them.

Out of respect for the original poster I am butting out of this thread.

what a pedophile...never have kid with this man ladies! he dreams of kids suckling his balls!

Told him to mind his own beezwax.

And Smriti, a little bit of thank you to Kukur would help. All of what we researched were available on the internet.

SmritiJi: I feel really comfortable leaving you at Kiddo's and kukur's extremely helpful hands... Good luck.

the two pillars of sajha.