Private Company

AAA

DEFINITION of 'Private Company'

A company whose ownership is private. As a result, it does not need to meet the strict Securities and Exchange Commission filing requirements of public companies.

INVESTOPEDIA EXPLAINS 'Private Company'

Private companies may issue stock and have shareholders. However, their shares do not trade on public exchanges and are not issued through an initial public offering. In general, the shares of these businesses are less liquid and the values are difficult to determine.

RELATED TERMS
  1. Private Finance Initiative - PFI

    A method of providing funds for major capital investments where ...
  2. Shareholder

    Any person, company or other institution that owns at least one ...
  3. Going Private

    A transaction or a series of transactions that convert a publicly ...
  4. Public

    A reference to anything that can be possessed or freely researched ...
  5. Scrip

    1. A written document that acknowledges a debt. 2. A temporary ...
  6. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
Related Articles
  1. Why Companies Stay Private
    Investing Basics

    Why Companies Stay Private

  2. Looking For Profit In Privately-Held ...
    Fundamental Analysis

    Looking For Profit In Privately-Held ...

  3. Why would a company do a reverse merger ...
    Investing

    Why would a company do a reverse merger ...

  4. What's the difference between publicly- ...
    Investing

    What's the difference between publicly- ...

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center