What is the difference between a "public company" and a "private company"?

Answer 1

Public Company - A company that has issued securities through an Initial Public Offering (IPO) and which are traded on at least one stock exchange or over-the-counter market. These companies must file documents and meet stringent reporting requirements set out by the Securities and Exchange Commission, including the public disclosure of financial statements. Any company whose shares are available to the public is a public company.

Private Company-A company whose ownership is private and, thus, do not need to meet the strict SEC filing requirements of public companies. Private companies may issue stock and have shareholders. However, their shares do not trade on public exchanges and are not issued through an IPO. In general, the shares of these businesses are less liquid and the values difficult to determine.

Answer 2

A public company register with SEC and is required to provide financial data on quarterly and annual basis to the government. Also other people can buy stock in it and invest in it. A private company is one that is usually owned by one to few individuals. They are not required to file their financial data with SEC and not everyone can purchase stock from the company.

Answer 3

a public company is a company that is open for people to buy shares (stock market). a private company is internally owned