Public vs private company

Question

Accepted Answer

Public vs private companies differ in ownership, financial reporting requirements, and access to capital markets.

Public companies are owned by shareholders and have to disclose financial information to the public, while private companies are owned by individuals or small groups and have more privacy.
Public companies are subject to more regulations and oversight, such as SEC filings and shareholder meetings, while private companies have more flexibility in decision-making.
Public companies have access to capital markets for fundraising through issuing stocks or bonds, while private companies rely on private investors or loans for funding.
Examples: Public companies like Apple and Google have millions of shareholders and are traded on stock exchanges, while private companies like Cargill and Koch Industries are family-owned and not publicly traded.

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