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

It means that all the shares are owned by a group of people, and those people agree to stop listing the stock on a public stock exchange. It can be good, no pesky public investors to tell things to and a lot fewer regulations. If can be bad, when the company needs more capital the group has to decide amongst themselves to invest it rather than just selling shares on the stock market.

It’s not at all like liquidation, when is going out of business.

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