Private Company

Private Company - A company that does not sell shares on the open market. It is the opposite of public company - a public company does sell their shares on the open market. Usually private companies divide their shares among family members or workers who have earned their merits in the company. This kind of ownership is called private. Still private companies are important to the economy of a country. Private companies are usually called corporations or limited corporations. In the US, private companies are not required to publish their financial statements, opposed to public companies. There is a limit on the number of shareholders that private companies might have.