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What is the difference between a private company and a public company?

What is the difference between public and private companies and what are the reasons why a company chooses one form over the other?

  • There are many companies like Google, Facebook, Yahoo, .. have "PUBLIC" type . But there are so many companies with same big like IKEA, LEGO, KOCH, .. but have "PRIVATE" type. Why they not change the company to "PUBLIC" type? What is difference?

  • Answer:

    Private companies have less rules to follow because they are not playing with other people's money. In a private company the management has absolute power. Public companies get to play with investor money but they have to play by more rules. In a public company the management is beholden to the shareholder. I think its a matter of preference. If you give up control you get more money. That is if you can even stay in your job.

Osei-Kwame Afriyie at Quora Visit the source

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