What is the distinction between private and public equity investments?

The main distinction between private and public equity investments is the way they are handled. Private equity investments are handled privately with an investment firm or team of investors, while public equity investments are handled publicly through the stock market. Private equity investments are often directed to companies that require capital to grow or are looking for a new line of business. These investments are generally riskier than public equity investments due to the fact that the company in question is not yet publicly traded, and thus can not easily be sold if and when needed. The potential for returns on private equity investments, however, is higher than public equity investments. On the other hand, public equity investments are much less risky than private equity investments by virtue of being listed on public exchanges, such as the New York Stock Exchange. Here, investors buy and sell shares in publicly traded companies that are listed on the exchange, with the potential gain or loss depending on the performance of the company or the stock market in general. In California, private equity law governs all transactions and investments made by investors who are based in the state. The laws ensure that interests of the investors are protected, and that all transactions made are fair and transparent.

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What is the distinction between private and public equity investments?

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