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Brandon, Kathryn and Michael Schwartz

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WHAT IS ‘PHANTOM STOCK’?

‘Phantom stock’ can be an effective way to keep key employees or senior management with a corporation.  Rather than receiving actual stock in the corporation, the employee receives ‘phantom stock’ that follows the price movement of the corporation’s actual stock and pays out the resulting profits of the corporation to the recipient. The benefit of phantom stock to the existing…

WHAT IS THE DIFFERENCE BETWEEN A CLOSELY HELD CORPORATION AND ONE THAT IS PUBLICLY TRADED?

Most businesses in Minnesota are considered “closely held”.  As it relates to a corporation, that means having 35 or fewer shareholders.  Shareholders are the individuals that hold stock in the corporation – they are the owners.  Being a shareholder in a closely held corporation has both pluses and minuses, just as being a shareholder in a publicly traded company does. …