Definitions of Private And Public Companies - SS1 Economics Lesson Note

Private and public companies are two distinct types of businesses. A private company is owned by a small group of individuals or a single person, while a public company has shares that can be owned by the general public. Here are more detailed definitions:

• Private Company: A private company is a business that is privately owned, usually by a small group of individuals or a single person. These companies are not required to disclose financial information to the public, which means they can operate with greater privacy and flexibility. Private companies often have a more personal and close-knit culture.

Public Company: A public company is a business that has issued shares of stock to the public, which can be bought and sold on the stock exchange. Public companies are required to disclose their financial information to the public, which provides transparency and accountability. Public companies often have a larger and more diverse group of shareholders.