What is a Private Company?
A private company is one whose equity (shares) is not available for purchase on public exchanges, although they may issue stock. This means that the company is owned entirely by the employees and investors, and the value is hard to derive exactly.
Private companies are not subject to as much regulation as public ones, for example they do not have to publish financial statements. Public companies may be privatized if an entity comes and purchases all the shares on the market so as to obtain full ownership of the company. A private company can become public through an IPO.
Everything You Need To Master Excel Modeling
To Help you Thrive in the Most Prestigious Jobs on Wall Street.
To continue learning and advancing your career, check out these additional helpful WSO resources:
or Want to Sign up with your social account?