Characteristics of Private And Public Companies - SS1 Economics Lesson Note

Private Companies:

• 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:

• 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