BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Lower reporting costs.
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Potentially weaker corporate governance
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Lower returns because of its less liquid market
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Detailed explanation-1: -The term “private equity” denotes shares of owner‑ ship in companies that are not (or not yet) listed on a stock exchange. The term “public equity” refers to shares of companies that already trade on a stock exchange.
Detailed explanation-2: -Generally, public equity investments are safer than private equity. They are also more readily available for all types of investors. Another advantage for public equity is its liquidity, as most publicly traded stocks are available and easily traded daily through public market exchanges.
Detailed explanation-3: -Private equity is an investment in a privately held company. Public equity is when you hold shares of a company that is listed on a public stock exchange. Private equity investments are available only to high net worth and institutional investors, whereas investors of all types can own public equity.
Detailed explanation-4: -Private equity is defined as the shares and stocks owned by individuals or organisations in a private company. Public equity is defined as the shares and stocks owned by individuals or organisations in a public company.