Private vs Public Companies

A private company is a business that is owned by individuals or a small group of shareholders and is not publicly traded on a stock exchange.

A public company is a business that is owned by shareholders and its shares are traded on a stock exchange, allowing the general public to invest and become shareholders.

The main difference between a private company and a public company is that private companies have a limited number of shareholders and their shares are not publicly traded, while public companies have a large number of shareholders and their shares are traded on a stock exchange.