...
2007-03-12 10:34:42 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
A public investor buys stock on the open market through the stock exchange.
A private investor buys shares directly from the company, when the company wants to raise money, and can't borrow, and can't afford to do a public offering.
Private sales often involve warrants to buy more shares in the future at a certain price, attached to the shares sold. this is a bonus to get the one shot bunch of money.
2007-03-12 13:17:18 · answer #1 · answered by bob shark 7 · 0⤊ 0⤋
Public investor buys stocks in the open market and trades with another person in the open market. In order to buy there must be a seller. Also the company is run by its management team. A private investor buys the stock of a company in the open market with the intention of bringing it private. Being the sole or controlling owner and possibly running the business themselves or replacing the management team.
2007-03-12 12:50:23 · answer #2 · answered by phantomtrader2 2 · 0⤊ 1⤋
read tips on investing, stocks and mutual funds to help you better on this site
2007-03-12 12:08:12 · answer #3 · answered by Anonymous · 0⤊ 0⤋