What does it mean for a company to go private? Is it the same as liquidation? Is it a good thing for the company?

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I’m writing a story about a company with a new leader focused on making stock prices rise. I want to get the company to do basically the opposite of making their company public. From what I’ve read, you don’t want to do buybacks as a company and going private might be equally as bad, but is it?

In: Economics

13 Answers

Anonymous 0 Comments

Going public gives a company of influx of money so they can invest that money back into the company. Shares of the company are sold and, in return, control of and profits of the company are divided up amongst the people who own those shares.

Going private is the opposite. One or more people buy back all of the stock in the company and they take full ownership of the company and its profits.

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