What is the difference between Privately owned and publicly owned businesses?

Question

I need to understand the 2 before I go on to my next assignment of my business coursework, any help? I know the difference between the 2, just dont know how to really explain the differences... anyone??

Answer 1

Public companies have shares for sale to anyone.

Answer 2

A Privately owned business does not sell stock on any of the organized stock exchanges.

Anyone can buy stock in a public company. When stock is bought that person becomes part owner.

With private companies it is impossible for anyone in the public to buy shares of stock from them. Ownership of these types of comanies is not open to the public.

For example, if you started a company that sells clothes, you would be the owner. No one could buy shares of your company. You, and or your partners are the soul and eternal owners unless you choose to go public and allow someone to buy into the corporation thus reducing the amount you own it.

Answer 3

a privately owned business does not have to report to the  public of it's earnings or losses or the salary that is paid to the main principles of the company. a publicly owned company has to divulge every aspect of it's business down to the rolls of toilet paper it uses every quarter. this is just a simple example.