What are the differences between private equity and public equity markets?

Private equity and public equity markets differ in a few key ways. Generally, private equity markets involve investments that are not publicly traded on a stock exchange. Private equity investors usually enter into an agreement with a company for a certain tenure and receive a return of their investment along with a share of the profits. Public equity markets, on the other hand, involve companies whose ownership is spread among a number of shareholders, who are able to buy and sell their shares on a public exchange. These shares represent a piece of the company and, if the company performs well, the shareholder will be able to make a profit on the sale of the stock. In terms of laws governing these markets, private equity investments generally involve a contractual relationship between an individual or entities and are regulated by the private equity company itself. Laws concerning public equity investments are usually more strictly defined by the governmental entities, such as the Securities and Exchange Commission in the United States. In Missouri, the laws governing private equity transactions are largely governed by the Missouri General Business Law. This law requires all individuals or entities that are involved in a private equity transaction to register with the Missouri Securities Division. Additionally, it sets out the requirements for disclosure, reporting, and filing of documents, among other requirements. The provisions of the Missouri General Business Law are designed to protect investors and to promote fair and honest practices in the private equity market.

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What are the differences between private equity and public equity markets?

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