The primary distinction between a public and private firm is that a public corporation sells a portion of its business to the general public via public offerings. A small group of people own a private firm. The founder and other investors are generally among those who make up this small group. Public firms are frequently under pressure from the markets in which they operate. To keep up with market demand, public firms may be forced to look in terms of short-term goals. As a result, public firms must make enough profit to keep investors happy. Corporations, LLCs, partnerships, and other forms of private companies are all examples of private companies.

In most cases, a private company is owned by the company's founders, management, or a group of private investors. A public company is a company that has sold all or a portion of itself to the public via an initial public offering. A public company sells company stock on the stock market. That means that the general public can buy shares, and therefore partial ownership, of the company. Because these shares get bought, sold, and traded on the stock market, you may also see a public company referred to as a publicly traded company. It’s the same thing. In order to sell shares on the stock market, a public company must first have what’s called an initial public offering, more commonly called an IPO. That just means that it’s the first time that investors from the general public can buy company shares on the stock exchange. A private company doesn’t sell stock on the public market. Instead, all ownership is held by those founders and private investors (and sometimes a few other types of individuals) which is why you might hear a private company called a privately held company. As you can probably guess, that means that a private corporation usually won’t have had an IPO. (In some cases, a public company can choose to go private again.) Instead, it will stick to private fundraising, often through venture capital. 

Private: Koch Industries, LEGO

Public: Walmart, Coca Cola 

Posted by: @amandaally1029

What is the difference between public and private companies? Based on their differences, what are some pros and cons of each? Give an example of a private and public company, and state the successes.

The difference between public and private companies are that public a portion and or all of the company is sold and made open to the the public. A private company is a company that is owned by its founders and or private investors. The pros of a public company are that you receive a quarterly and or annual report, also that one can buy, sell or trade within the company. The cons of a public company is any hedge fund and or investment firms have more buying power. The pros of a private company is the capital in the company may not be liquid, the investing period can be long, and finding someone will to invest in the business. A example of Public company is Walmart whose success and or its net worth is billions today. A private company is Spacex whose success is also equally profitable as this companies net worth is billions.

A public company issues publicly traded stock, can have unlimited shareholders, is responsible to the SEC, must report financial data quarterly, is subject to Sarbanes-Oxley and PCAOB, can give employees stock options among other rewards. Some examples of a public company are Google, Apple, and Tesla. These companies are traded on the stock market, shares profits with shareholders through dividend, and are motivated by pleasing the shareholders. Private companies are owned by a few individuals, not publicly traded, not responsible to the SEC, and does not need to report financial data quarterly. One well known private company is IKEA.

Public traded companies have a pro on, if successful, their financial growth year after year that provides momentum to their customer basis. On the other side of the coin, if a company is doing poorly, investors may become wary about their stocks and financial future of said company so that can be a slippery slope if a company does not continually produce positive results. 

A private company has the ability to hide its financials and remain positive within the public eye so long as no scandals or repercussions of their products occur. A con is that any negative news may reflect their company rather than the profit of their sales that may put them in a poor light when consumers are buying their product. 

There are multiple differences as said in previous posts between public and privately owned companies that show that one doesn't necessarily have advantage over the other, but there are times that the numbers or news of a company can help customers/consumers make a decision on trusting a companies products or abstaining from their purchase. 

Private Companies doesn't answer to any stockholders, follow regulations issued by the SEC, and they have the right not to disclosure any information. Public companies on the other hand must obey the regulations rules by the SEC; however, the primary advantage of a public company is that they can tap into the market by selling more share.

Private Companies: Publix, Uber.

Public Companies: JP Morgan Chase, Microsoft. 

This is what I believe:
A private firm can only sell its shares to specific investors, but a public corporation can sell its shares to the entire public on the stock market. The main difference between a public and a private corporation is this. Due to the millions of people who have invested in your company, the public firms gain from trading on the stock market and making their shares available to the general public because it acts as a source of income and is relatively stable. There are specific laws and rules that must be followed when trading on the stock exchange, and the business must also inform the investors of its financial status.

As the definitions of public and private companies have been stated previously, I will elaborate on the pros and cons of each. Firstly, from a financial standpoint it is typically more expensive to "go public" for most companies. There are often quarterly financial goals to meet and more administrative and compliance expenses involved. There is an increased reputation with being a public company though which can positively impact the growth of the company by piquing the interest of great talent to join as employees or companies seeking to be acquired by a reputable company. Private companies are not subject to disclosing their finances publicly and quite frankly they are easier to manage than public companies. Private companies operate as a separate legal entity from their shareholders and directors which from a tax and liability standpoint protects the shareholders' assets. 

Public and private companies share many similarities and differences but are both necessary to exist. Public companies have more reporting requirements than private. They must routinely issue financial statements that reveal the current state of the company’s wellbeing. With private companies they can keep their data (property) to themselves because that's a privilege they have as owners. Since private companies depend on their revenue from venture capital, they have to answer to their investors like shareholders in a public company. An example of a private company is Publix supermarket, and an example of a public company is the Proctor and Gamble company.

Hello,

Public and private companies differ primarily in their ownership, governance, and how they raise capital. Public companies are traded on stock exchanges and have their shares available for purchase by the general public. They must adhere to strict regulatory requirements, including financial reporting and transparency, as mandated by government agencies like the Securities and Exchange Commission (SEC) in the United States. Public companies typically have a large number of shareholders and are subject to the scrutiny of analysts and the media. An example of a public company is Apple Inc., whose public status has allowed it to access vast amounts of capital, fueling its expansion and innovation. The key success of public companies is their ability to raise funds from a wide pool of investors, enabling them to pursue ambitious growth strategies and attract top talent through stock options and benefits.

Private companies, on the other hand, are not publicly traded, and ownership is usually concentrated in the hands of a few individuals or entities. They do not have the same level of regulatory oversight and are not required to disclose their financial information to the same extent as public companies. A notable example of a private company is Cargill, one of the world's largest privately-held corporations. Cargill's success as a private company lies in its ability to make long-term strategic decisions without the pressure of quarterly earnings reports and shareholder demands. It can maintain greater confidentiality about its operations and finances, which can be a competitive advantage.

The pros and cons of each type of company are as follows:

**Public Companies:**
Pros:
1. Access to a wide pool of capital through stock offerings.
2. Enhanced liquidity, as shares can be easily bought and sold.
3. Greater visibility and credibility in the market.
4. Attracting top talent with stock-based incentives.
5. Opportunities for mergers and acquisitions.

Cons:
1. Stricter regulatory and reporting requirements.
2. Pressure to meet short-term financial expectations.
3. Exposure to stock price volatility.
4. Potential loss of control as ownership is diffused.
5. Increased scrutiny from analysts, media, and activists.

**Private Companies:**
Pros:
1. Greater control over company decisions and strategy.
2. Less regulatory and reporting requirements.
3. Ability to maintain confidentiality about business operations.
4. Flexibility to focus on long-term goals without public market pressures.
5. Reduced exposure to stock price volatility.

Cons:
1. Limited access to external capital, which can hinder growth.
2. Difficulty in attracting top talent without stock-based incentives.
3. Limited options for exiting or liquidating investments.
4. Limited transparency can lead to skepticism from partners and customers.
5. Potential for ownership disputes among private stakeholders.

Public companies are businesses whose shares are traded on stock exchanges and available to the general public. They have more stringent reporting requirements and are subject to greater regulatory scrutiny. Some pros include easy access to capital through stock offerings, while cons include more regulatory burdens. For example, Apple Inc. (public) has enjoyed success with its widely recognized products, while Cargill Inc. (private) has thrived in the food industry by maintaining its privacy and control over operations.