What is the difference between a private and public business?

Answer 1

Most businesses start private. They "Go public" when they divide up a portion of their company that they decide to sell as stocks on a stock market (there are a few in the US). Each stock represents a percentage of the ownership of the company. If a company is privately held then then it is not sold on a market.

Private companies can still have "stocks" but they are not traded publicly.

Answer 2

The previous answers are generally correct. Public companies are just that...public in the sense that the general public can buy ownership (stock) in your public company. Additionally, there are Securities Exchange Commission rules that deal with when a company must disclose things such as a registration statement in a public offering or a continuous reporting company may have to file 8-Ks or S-10s which are reports (but there are certain qualifications needed for this) Private companies, or privately held companies, are companies that are generally not subject to disclosure rules by the SEC and ownership is concentrated in a small number of individuals. Additionally, private companies are not publicly traded on any national exchange like NASDAQ or DOW or Chicago National, etc.

Answer 3

In a very basic sense - it has to do with ownership. Private companies have control over the their stock and the CEO/President and perhaps some friends or advisors generally control the Board of Directors; while public companies open up the ownership of their company to anyone who can afford to buy shares of the company - usually in a marketplace such as the New York Stock Exchange, NASDAQ, and the OTC BB. After the sale of the majority of the stock, the officers of the now public company have to report to their stockholders, who collectively make decisions via the Board of Directors (generally made up of the shareholders with the largest stake in the company).

Answer 4

In a private business, ownership is maintained by private entities (owners) who control the loss/profit of the business. They are legally responsible for the losses, and must claim the gains as income.

In a public business, the ownership of the business is transferred to the public through sales of stock in the company, such that anyone who buys the stock attains a portion of ownership in the business. A public company is heavily regulated by the FTC.

Answer 5

A private business are in it for the money (profits). Private businesses can also participate in the stock exchange. A public business is non-profit (not in it for the money). Public businesses; city/county/state/federal jobs.

Answer 6

Very merely: deepest business enterprise is a business enterprise owned by potential of a individual or a partnership. it is not subject to "damaging takeovers" yet whilst the business enterprise is going incorrect the owner/companions are totally to blame for the expenses. Public business enterprise is one that is floated to the prevalent public. that's quoted on the Stack marketplace and shares interior the business enterprise could be freely traded. that's in danger of a "damaging takeover", it somewhat is whilst yet another party buys sufficient shares to hold a controlling stability (they are the main important shareholder). Many public agencies, quite smaller ones, withhold a undeniable variety of shares to dodge that taking place. A Public constrained business enterprise (p.c.) is one the place if the business enterprise is going undesirable then the criminal duty of each and every shareholder is constrained to the fee of the shares and not something greater. A constrained criminal duty Partnership (LLP) is comparable.

Answer 7

Private is owned by the company itself and public has some part owned by shareholders.

Answer 8

You can buy stock in a public company though the stock market or over the counter.

Answer 9

public businesses issue stock whereas the public can by shares/ownership of the company.

private businesses do not.