Free NewsletterPro Login
Home » Deep Briefs »  » Public Vs Private Company: What's The Difference?

Public Vs Private Company: What's The Difference?

Published: Feb 20, 2026 
Disclosure: Briefs Finance is not a broker-dealer or investment adviser. All content is general information and for educational purposes only, not individualized advice or recommendations to buy or sell any security. Investing involves significant risk, including possible loss of principal, and past performance does not guarantee future results. You are solely responsible for your investment decisions and should consult a licensed financial, legal, or tax professional before acting on any information provided.
Summary:

A public company sells shares to everyday investors on a stock exchange.

A private company has investors too, but follows different rules.

The biggest difference comes down to who can own a piece of the business - and how.

Why This Matters to You as an Investor

Some of the biggest companies you know like Amazon, Apple, Ford, Walmart, and Nike are all public.

Why should you care?

When you buy a stock, you're buying ownership in a public company.

That means if the business does well, your shares could be worth more, which is how millions of investors have built wealth over the last 100 years.

But here’s the thing: Not every company is public - in fact less than 1% of all U.S. businesses are publicly traded.

This is important for investors to understand, so you know what can build your wealth and what your options and potential opportunities are.

Let’s break down what a public company is, what a private company is, the differences, and everything else you need to know.

But first: You can invest in public companies - but with thousands of them out there, how do you know which ones to choose?

Our market analysts are researching new stocks every week and showing you which ones they’ve got their eye on.

Discover potential stock market investing opportunities by subscribing to Market Briefs Pro today.

What Is a Public Company?

A public company is one that has sold shares of ownership to the general public through a stock exchange - like the New York Stock Exchange (NYSE) or the NASDAQ.

When you buy one share of Amazon, McDonald's, or Tesla, you become a part owner of that company. 

That's it. That's what a stock is - one share of ownership in a public company.

As an owner, you get to:

  • Participate in the company's growth - if the stock price goes up, your investment goes up with it.
  • Collect dividends - some companies pay you a portion of their earnings just for holding shares
  • Vote in shareholder meetings - the more shares you own, the more say you have

There's one catch. Owning stock doesn't mean you get to manage the company day to day. 

You own it on paper. You can't walk into a McDonald's and tell the staff what to do - even if you own shares. 

The company is run by its management team, not its shareholders.

Public companies are also regulated by the SEC (Securities and Exchange Commission). 

They're required by law to publish their financials - things like annual reports (10-Ks) and quarterly reports (10-Qs). 

That transparency is a big deal. It's how investors can research and evaluate whether a company is worth buying.

Examples of public companies: Amazon, McDonald's, Tesla, Meta, Coca-Cola, and UPS.

What Is a Private Company?

A private company has not offered its shares to the general public. You can't buy a piece of it through your brokerage account.

Private companies still have investors. But those investors are typically founders, early employees, venture capital firms, or private equity groups - not everyday retail investors like you and me.

Because there are no public shareholders, private companies aren't required to publish their financials. 

They operate with a lot more secrecy. There's no stock ticker to look up. No 10-K to read.

Examples of private companies: Many early-stage tech startups, and even some large household names that have chosen to stay private

The Big Difference at a Glance

FeaturePublic CompanyPrivate Company
Shares available to public?YesNo
Traded on stock exchange?YesNo
SEC regulated?YesLimited
Required to publish financials?YesNo
Can retail investors buy in?YesGenerally no
Early investors can cash out?Yes (via stock market)Not easily

How Does a Company Go From Private to Public?

When a private company decides to go public, it does so through an IPO - an Initial Public Offering

This is the first time that company's shares become available to everyday investors.

Companies go public for a few key reasons:

1. To raise money. Going public allows a company to sell shares and bring in large amounts of capital to fund growth. 

Alibaba raised $21 billion in its 2014 IPO. Meta (formerly Facebook), Kraft, and UPS all raised billions when they went public, too.

2. For legitimacy and publicity. When a company goes public, it comes under SEC oversight. That level of scrutiny adds credibility. 

It signals to the market: we're legit, we're regulated, and we're here for the long haul. The buzz around an IPO can also build massive investor excitement.

3. To pay back early investors. When a company is private, its early investors - the people who funded the business before it was well-known - have money tied up in the company. 

Going public creates a market for those shares. Early investors can finally sell their stake and get paid.

What Happens to Investors After an IPO?

Once a company is public, its shares trade on an exchange every business day. Investors can buy or sell at any time during market hours.

The stock price goes up when more people want to buy than sell. 

It goes down when more people want to sell than buy. 

Over time, the price tends to reflect how well the company is actually doing - its revenue, its growth, its competitive edge.

This is why learning to research companies matters so much. 

Public companies give you the data. The 10-K, the income statement, the balance sheet - it's all there. The question is whether you know how to read it.

The Bottom Line On Public Vs Private Companies

Here's the simplest way to remember this:

Public company = you can buy it. 

Private company = you can't (usually).

As a retail investor, the stock market is your primary access point to building wealth through company ownership. 

That means you're almost always dealing with public companies.

Understanding what makes a company public - the transparency, the regulation, the IPO process - gives you a massive leg up. 

Because the more you understand how these businesses work, the smarter your investment decisions become.

Being a smarter investor can help you get an edge on Wall Street.

Market Briefs Pro gives you all of the data and research you need to make smarter investment decisions and spot potential opportunities before the rest of the market catches on.

Subscribe to Market Briefs Pro by clicking here.


Blogs

May 5, 2026
How to Create Multiple Income Streams: A Beginner's Playbook
  • Most people rely on a single income stream from their job - which is also the most heavily taxed.
  • Multiple income streams come from a mix of cash flow, dividends, side businesses, real estate, and royalties.
  • The fastest path for most beginners is starting with one extra stream - usually dividends or a side hustle - and stacking from there.
Read More
May 5, 2026
The 60/40 Portfolio Explained: A Beginner's Guide
  • A 60/40 portfolio holds 60% in stocks and 40% in bonds (or other fixed income).
  • It's designed to balance growth from stocks with stability from bonds.
  • Your "right" mix depends on age, time horizon, income needs, and how well you sleep when markets drop.
Read More
May 5, 2026
How to Invest in Silver: A Beginner's Guide
  • Silver is both a precious metal and an industrial metal, used in solar panels, electronics, and medical tech.
  • Investors can buy silver four main ways: physical bars and coins, ETFs, mining stocks, or futures contracts.
  • Most beginners are best served by allocating a small slice of their portfolio to silver - usually between 1% and 3%.
Read More
May 1, 2026
Asset Allocation by Age: The Right Portfolio Mix at Every Stage of Life
  • Younger investors should hold mostly stocks because they have decades to recover from crashes and benefit from compounding.
  • Allocations gradually shift toward bonds and stable income as retirement approaches, but stocks remain important even past age 65 to outpace inflation.
  • Annual rebalancing is essential - it forces you to buy low and sell high while keeping your portfolio aligned with your actual life stage.
Read More
April 30, 2026
Stablecoin Explained: Why Some Cryptocurrencies Actually Aren't Volatile
  • Stablecoins are cryptocurrencies pegged to stable assets like the US dollar, giving crypto-style speed and access without the volatility of Bitcoin or Ethereum.
  • Fiat-backed stablecoins like USDC are the safest option, while algorithmic stablecoins have failed spectacularly and should generally be avoided.
  • Stablecoins fit a portfolio as cash reserves with better yields, a hedge against crypto volatility, and a fast, cheap rail for international transactions.
Read More
April 30, 2026
Buy Now, Pay Later Risks: Why This "Easy" Payment Method Is Dangerous to Your Wealth
  • Buy now, pay later services like Klarna, Affirm, and Sezzle are debt products designed to feel harmless while keeping users in a cycle of overspending.
  • BNPL exploits psychological debt blindness, triggers late fees, and damages credit scores without helping users build positive credit history.
  • Building real wealth means waiting 30 days, paying upfront when you have the cash, and avoiding systems built to extract money from your future income.
Read More
April 30, 2026
Dividend Payout Ratio: The Secret Metric That Shows If a Stock Is Safe or Risky
  • Dividend payout ratio is total dividends paid divided by net income, showing the percentage of earnings a company returns to shareholders.
  • A 20-50% payout ratio is generally safe and sustainable, while ratios above 75% often signal a dividend cut is coming.
  • High dividend yields can be warning signs, not opportunities - safety and dividend growth matter more than the headline yield number.
Read More
April 30, 2026
Ethereum for Beginners: What It Is and Why Smart Investors Are Paying Attention
  • Ethereum is a blockchain platform that runs smart contracts, while Ether (ETH) is the cryptocurrency that powers the network.
  • Use cases include decentralized finance, NFTs, gaming, supply chain tracking, and digital identity - many still experimental.
  • Most investors should treat Ethereum as a small allocation hedge using dollar-cost averaging, not a get-rich-quick lottery ticket.
Read More
April 30, 2026
Dollar Cost Averaging Strategy: How to Beat Emotion and Build Wealth Steadily
  • Dollar cost averaging means investing the same amount at regular intervals regardless of what the market is doing.
  • The strategy automatically buys more shares when prices are low and fewer when prices are high, lowering your average cost over time.
  • DCA removes emotion, eliminates the need to time the market, and turns volatility into a mathematical advantage for long-term investors.
Read More
April 30, 2026
The BRRRR Strategy: How to Build Real Estate Wealth Without Big Money Down
  • BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat - a five-step framework for scaling real estate without saving for big down payments.
  • The strategy works by buying distressed properties below market value, adding value through smart renovations, and pulling out equity through refinancing.
  • Tax advantages like depreciation and mortgage interest deductions make BRRRR a powerful tool for owners willing to manage tenants and contractors.
Read More
1 2 3 20
Share via
Copy link