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

The primary difference between a public and a private company is in their ownership and the way they raise capital. A public company has shares that are traded on a stock exchange, allowing anyone to buy and sell ownership stakes in the company. Public companies are required to disclose financial information regularly to meet regulatory requirements. In contrast, a private company’s shares are not publicly traded, and ownership is typically limited to a small group of investors, such as the company’s founders, family members, or venture capitalists. Private companies have fewer disclosure requirements and greater control over decision-making.