BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Private equity firms are focused more on short-term results than publicfirms.
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Private equity firms’ regulatory and investor relations operations are lesscostly than those of public firms.
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Private equity firms are incentivized to be more open with investors about governance and compensation than public firms.
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Detailed explanation-1: -Key Takeaways. 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-2: -Unlike private investment companies, which have a relatively low barrier of entry, private equity firms are generally limited to pension funds, large endowments, and very wealthy individuals. Smaller investment clubs may purchase shares of a company as an investment, but not the entire company.
Detailed explanation-3: -One of the biggest differences between private and public equity is that private equity investors are generally paid through distributions rather than stock accumulation. An advantage for public equity is its liquidity as most publicly traded stocks are available and easily traded daily through public market exchanges.