What are the differences between private and public companies?

Private and public companies differ in structure, ownership, and regulation in Washington. Private companies are usually owned and managed by an individual or small group of individuals, such as a family, and are not required to be publicly traded on a stock exchange. Public companies are larger in size and have their shares available for public trading on a stock exchange, meaning that anyone can purchase a share of the company. Private companies have more control over their decision-making process, as their policies and decisions are largely made by the owner(s). Public companies are managed by a board of directors who are elected by the shareholders and are bound by the regulations of the Securities and Exchange Commission (SEC). For example, public companies must provide detailed financial statements and information to the SEC. The laws that govern the two types of companies also differ. Private companies are subject to state laws, while public companies are bound by both state and federal regulations, including the SEC. Both types of companies are subject to other legal requirements related to their industry or product, such as those related to employees, tax, and intellectual property. In general, private companies have fewer regulations and more discretion in how they conduct business, while public companies are subject to more oversight and regulation. Public companies must adhere to disclosure requirements and meet certain corporate governance standards in order to protect shareholders and the public.

What are the differences between private and public companies?

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