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Mattie718 replied to the topic Public vs. Private Companies in the forum Business 101 6 years, 11 months ago
There are several key differences between public and private companies. Public companies can be owned by an almost unlimited amount of shareholders and stocks are traded publicly on the stock market. Owners of this stock may receive dividends for each individual stock they own after quarterly or yearly profits are calculated. They are responsible for submitting quarterly reports to the Securities and Exchange Commission consisting of documents such as Cash Flow Statements, Income Statements, and Balance Sheets, which can be viewed by anyone who wishes to review that information. Employees are sometimes compensated through bonuses and stock options. Private companies do not have to disclose their financial documents and may only be attainable by employees in that company. They have fewer shareholders and usually reward employees through profit sharing and stock appreciation rights.