Privately Owned

AAA

DEFINITION of 'Privately Owned'

A company that is not publicly traded on a securities exchange. The majority of companies are privately owned, usually by either one individual or by a small group of individuals. Although offering securities for sale to the public can be a good way to obtain large amounts of financing, public ownership requires considerable effort to ensure compliance with securities regulations. Public ownership is generally impractical for small and medium-sized business.

INVESTOPEDIA EXPLAINS 'Privately Owned'

For a variety of reasons, ownership stakes in privately owned companies are often much more difficult to sell or transfer. Securities laws place higher restrictions on selling private ownership stakes, since dealing in these securities is often much more complex. For instance, accounting records may be inaccurate, unaudited, and/or not in compliance with Generally Accepted Accounting Principles.

RELATED TERMS
  1. Going Private

    A transaction or a series of transactions that convert a publicly ...
  2. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  3. Private Equity

    Equity capital that is not quoted on a public exchange. Private ...
  4. Private Company

    A company whose ownership is private. As a result, it does not ...
  5. Management And Employee Buyout ...

    A restructuring initiative that involves both managerial and ...
  6. Roll-Up Merger

    A rollup (also known as a "roll up" or a "roll-up") ...
Related Articles
  1. Private Equity A Trendsetter For Stocks
    Mutual Funds & ETFs

    Private Equity A Trendsetter For Stocks

  2. How To Invest In Private Equity
    Mutual Funds & ETFs

    How To Invest In Private Equity

  3. The 10 Greatest Entrepreneurs
    Entrepreneurship

    The 10 Greatest Entrepreneurs

  4. SPACs Raise Corporate Capital
    Investing

    SPACs Raise Corporate Capital

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center