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

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

• What different standards are they held to (i.e. fees they must charge and channels they must carry).

• Answer:

  The difference between a private and a public company is that the public company has stock that is offered on and traded on the Stock Exchange. When major decisions are made by a publicly owned company the company board of directors must take a vote of the stockholders. The company board of directors must keep their stockholders informed of major policies in the company and any changes that could affect their stock as well as their earnings. In a private company the CEO or owner of the company can do pretty much as they please, as long as their board of directors or other officers agree. The is no rule on what channels are required or what fees can be charged. If the cable company is operated at a state or local owned utility then there are fee controls and restrictions. This is only done when the one cable company has a monopoly over the area. When the market is opened to private competition then these rules and controls are removed. However, in the case of a state or local run monopoly there are no rules on what channels must be provided. Since Direct TV and Dish Network can compete in almost every US market there are very few cable monopolies anymore.