Private Company

A private company is a type of business entity that is owned by a small group of investors and is not publicly traded on a Stock exchange. Private companies have restrictions on the transfer of Shares, meaning that ownership is typically limited to a select group of individuals, such as family members, friends, or private investors. They are not required to disclose financial information to the public, allowing for more confidentiality compared to public companies.

Examples of private companies include:

• Apple Inc. (before going public)
• Facebook, Inc. (initially private before IPO)
• Many family-owned businesses, such as local restaurants or retail shops.

Notable cases involving private companies:

• In 2013, the Koch brothers’ Koch Industries was recognized as one of the largest privately held companies in the U.S.
• In 2018, the buyout of Dell Technologies allowed it to become a private company again, providing more operational flexibility.