Key Difference Between Private Company and Public Company
Understanding the difference between private company and public company is essential for anyone involved in starting, investing in, or working with businesses. These two types of companies operate under distinct frameworks, serve different types of stakeholders, and have separate legal and financial responsibilities. Knowing these differences helps entrepreneurs and investors make informed decisions when choosing the right business structure. Key Difference Between Private Company and Public Company The difference between private company and public company lies in ownership, control, compliance requirements, and the ability to raise capital. While a private company is held by a limited number of shareholders and cannot offer its shares to the public, a public company is owned by shareholders who invest through public stock exchanges. This distinction influences how each company functions and grows in the marketplace. A private company is generally more flexible, less regulated, ...