Difference between public company and private company?
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A public company (sometimes called a publicly held company) is usually a corporation that issues shares of stock (a stock corporation). ... A private company is a stock corporation whose shares of stock are not publicly traded on the open market but are held internally by a few individuals.
Main difference
The main difference between a private vs public company is that the shares of a public company are traded on a stock exchange. Stocks, also known as equities, represent fractional ownership in a company, while a private company's shares are not.
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★ A public company can sell its own registered shares to the general public.
★ A private company can sell its own, privately held shares to a few willing investors.
★ The stocks of a public company are traded on stock exchanges.
★ The stocks of a private company are owned and traded by only a few private investors