Privately held company
A company whose ownership interests are not publicly traded on a stock exchange and are held by private investors, founders, or employees.
Private equity: Investment in companies whose shares are not publicly traded, often through funds that acquire ownership stakes. Private equity funds commonly buy, finance, and restructure privately held companies.
Public company: A company whose shares are offered to the public or traded on a public securities market. Its publicly accessible shares and disclosure duties distinguish it from private ownership.
Startup company: A young company organized to develop a scalable business model, often under substantial uncertainty. Many startups remain privately held while testing products and seeking investment.
Securities regulation: The body of laws and rules governing the issuance, sale, and trading of financial securities. Private offerings may qualify for exemptions, but still fall under securities laws.
Venture capital: Equity financing for young companies with high growth potential, provided by specialized investment firms. Venture capital often funds privately held startups in exchange for ownership and governance rights.
Public market: A regulated market where securities are traded openly among investors. Privately held companies lack the exchange trading that defines this market.
Family business: A business in which ownership or control is held by members of one or more families. Family ownership is a common way private companies retain control across generations.
Financial disclosure: The release of financial and other material information about an organization to stakeholders or the public. Private companies generally face less public reporting than exchange-listed companies.
Shareholders' agreement: A contract among a company's shareholders governing ownership rights, decision-making, transfers, and dispute resolution. It can restrict share transfers and set rules among a private company's owners.
Public float: The portion of a company's shares available for public trading. A private company typically has no exchange-traded public float.