Characteristics of Private And Public Companies - SS1 Economics Lesson Note
Private Companies:
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Owned by a small group of individuals or a single person
Not required to disclose financial information to the public
More personal and close-knit culture
Often have a limited number of shareholders
Shares cannot be traded on a stock exchange
Limited access to capital compared to public companies
Public Companies:
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Owned by a large group of shareholders
Required to disclose financial information to the public
A larger and more diverse group of shareholders
Shares can be traded on a stock exchange
Have greater access to capital compared to private companies
More complex governance structure and regulatory requirements