Private equity refers to shares/parts companies that aren’t publicly traded. This means that you and I can’t buy stock in them how we normally would through Robinhood, TD Bank, or any other broker you can name.
A private equity firm is a company that purchases parts (or all) of these companies. The goal can be to make them profitable, get them ready to go public, or a variety of other things. The important thing here is that they aren’t purchasing publicly traded stocks.
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