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Public vs. Private Companies

It is important to understand the distinction between public and private companies. Public companies are those that sell stock to the public, so that they are essentially publicly owned. Private companies do not sell stock to the public, and are privately owned.

Public companies are required by law to provide certain information, both to the government and company shareholders. Private companies are generally exempt from these reporting requirements.

Public companies file an annual report (known as a 10-K report) with the U.S. Securities and Exchange Commission (SEC). In addition to the 10-K, public companies typically produce a separate annual report to their shareholders. 

 

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