Private vs Public Companies
In the modern world, all companies can be placed into two categories: private and public. When companies are first created, they are private, and later on if they remain successful, that company can go through an IPO, or Initial Public Offering, to sell its shares to the world on any stock exchange, thus rendering it a “public company.” In simple terms, an IPO is when the owner of the company decides to raise capital by selling shares of their company to the public. In other words, an IPO is the first time a company introduces and sells its shares publicly.
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