private

(noun)

A company that is not publicly traded.

Examples of private in the following topics:

  • Advantages of Private Financing

    • Sometimes employees also hold shares of private companies.
    • Most small businesses are privately held.
    • Though most companies start out privately held, there are situations in which a publicly traded company becomes privately acquired.
    • The company is then privately financed.
    • This transition it known as "going private. "
  • Advantages of Public Financing

    • The main advantage in seeking public financing is that it offers a larger pool of funding for the company than private financing alone.
    • Usually, security of a publicly traded company is owned by many investors while the shares of a privately held company are owned by relatively few shareholders.
    • This is the reason publicly traded corporations are important; prior to their existence, it was very difficult to obtain large amounts of capital for private enterprises.
    • New companies, which are typically small, tend to be privately held.
    • Through this process, a private company transforms into a public company.
  • Types of Stock Market Transactions

    • Types of stock market transactions include IPO, secondary market offerings, secondary markets, private placement, and stock repurchase.
    • Through this process, a private company transforms into a public company.
    • Initial public offerings are used by companies to raise expansion capital, monetize the investments of early private investors, and become publicly traded enterprises.
    • Private placement (or non-public offering) is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors.
    • "Private placement" usually refers to the non-public offering of shares in a public company (since, of course, any offering of shares in a private company is and can only be a private offering).
  • Agency

    • They also can be hired by private firms.
    • A private firm might hire an investment bank for help with a merger or acquisition or for issuing an IPO (initial public offering of shares).
    • A private firm might also hire an investment bank as a placement agent.
    • Capital financing for private companies can come from a number of sources.
    • Equity financing: Private firms can sell some or all of their equity to investors.
  • Other Topics in M&A

    • M&A also includes the areas of value creation, corporate alliances, private equity, and divestitures.
    • In such a case, a firm may choose to raise funds through private placements.
    • The process of raising private equity, or debt, changes only slightly from a public deal.
    • Often, one firm will be the sole investor in a private placement.
    • Private equity firms, such as NBGI, provide funds for companies unable or uninterested in obtaining funds publicly.
  • Types of Private Financing Deals: Going Private and Leveraged Buyouts

    • LBOs mostly occur in private companies, but can also be employed with public companies (in a so-called PtP transaction, Public to Private).
  • Securities Exchange Act of 1934

    • It regulates stock exchanges, brokers, dealers, and even private traders.
    • The alternative trading system, or ATS, is a quasi exchange where stocks are commonly purchased and sold through a smaller, private network of brokers, dealers, and other market participants.
    • ATS acts as a niche market, a private pool of liquidity.
    • While the '33 Act contains an antifraud provision (Section 17), when the '34 Act was enacted, questions remained about the reach of that antifraud provision and whether a private right of action—that is, the right of an individual citizen to sue an issuer of stock or related market actor, as opposed to government suits—existed for purchasers.
  • The Goals of Capital Budgeting

    • Private equity firms, such as NBGI, provide funds for companies unable or uninterested in obtaining funds publicly.
  • Bitcoins

    • As a buyer completes a transaction, software encrypts that person's private key into the transaction along with the Bitcoin number.
    • A private key is like a person's bank account number.
    • This person gives the banker a code (or private key for Bitcoin) toapprove the transfer.
  • Ownership Nature of Stock

    • A shareholder or stockholder is an individual or institution (including a corporation) that legally owns a share of stock in a public or private corporation.
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