Markets

Antoy, Sheela Mae G. February 04, 2013

BSBAMA-4A Mr. Leonardo Aliling

“Difference between Public and Private Markets”

Many of you would have heard about public market and private market. Do you really know what is the difference between the two markets.

If you are not sure, below are some simple guide to follow.

In a secondary market, trading between investors can take place either in the public or private market or exchange.

On the legal prospective, a public market is an exchange that does not have the shareholders, and hence no share capital. This exchange is a company which is limited by guarantee and managed by the authorized members and who are the guarantors of the financial integrity of the exchange as specified by its business rules.

On the contrary, a share capital paid by all shareholders, and hence share capital paid by all shareholders. This exchange is not only a company limited by shares, but also managed by the authorized members in the same manner with the public exchange.

Reference : http://twcl99.hubpages.com/hub/Public-Market-versus-Private-Market

Privately-held companies are - no surprise here - privately held. This means that, in most cases, the company is owned by the company's founders, management or a group of private investors. A public company, on the other hand, is a company that has sold a portion of itself to the public via an initial public offering of some of its stock, meaning shareholders have claim to part of the company's assets and profits.

One of the biggest differences between the two types of companies deals with public disclosure. If it's a public U.S. company, which means it is trading on a U.S. stock exchange, it is typically required to file quarterly earnings reports (among other things) with the Securities and Exchange Commission (SEC). This information is also made available to shareholders and the public. Private companies, however, are not required to disclose their financial information to...