Difference between private and public companies

1. A private company runs the business for it's own profit. Whereas, a public company does not much care about profit as it is providing the goods or service for the public.

2. If a private company does not make money then they will have to sell their possessive things to pay off the debts and whereas the public companies will not have to. P

3. Public companies may sell the company's stocks and bonds on the public market, which makes it easier to raise money for expansion and to meet existing obligations. A private company cannot look to public financial markets as a way to sell the company's stock.

4. Public companies are required to register and file annual reports with the U.S. Securities and Exchange Commission which is not mandatory for privates.

5. Public companies are required to make information about the company's finances available to the public. A private company does not have to divulge information about the company to the public. However, a private company will have to provide information about the company's finances to potential investors.