Question

What is the difference between public ownership and private ownership?

Answer 1

Difference between public ownership and private ownership are as follows-

A. publicly owned shares can be sold on the stock exchange to any of the investors whereas privately owned share can only be sold to the investors who are willing to purchase it in the private market.

B. Publicly owned company can sell its registered share to normal public where as private companies can only sell its share to willing investors.

C.publicly owned share have higher amount of liquidity Whereas privately owned sale has low amount of liquidity.

D. Publicly owned share of companies are generally larger in size whereas privately owned companies will be smaller in size

E. Publicly owned shares have higher amount of regulation from the regulatory authorities whereas privately owned share have low amount of regulation

F. Public ownership is generally more preferred because it will be helpful in raising high amount of capital than the private ownership which are smaller in size.

G. Public ownership will be having higher amount of transparency where as private ownership will be having lower amount of transparency