Question

Which of the following is a risk of investing in a privately held company, instead of a publicly held company?

Answer 1

Private companies are not controlled b y the government and therefore there is a risk of shutting down as well, but Public companies are government owned companies

Answer 2

A privately held company is a company that is ran by a small number of shareholders, company members or non-government officals. There are no trading of the stocks to the public by means of the stock market but is traded privately. A publicly traded company is publicly listed for the gneral public. When working with a publicly traded company, those who wish to purchase stock in the company are allowed to do so and the stock is traded within the stock market.