Question

Help please.........

Answer 1

Executives of the company might also make a decision to take the company private, and buy the outstanding stock from shareholders. When a company goes private, its shares are delisted from an exchange, which means the public can no longer buy and sell the stock.

Answer 2

Private companies are not required to publicly disclose financial information, while public companies are required by the Securities and Exchange Commission to file an annual report documenting their performance in detail.

Because private companies don’t have to disclose financial information, they can focus on long-term growth instead of making sure shareholders are getting their quarterly dividends.

Private companies don’t need shareholder approval for operational and growth strategy decisions made by the company, as long as that is stated in their corporate documents.