Private Companies

You've learned a lot about public companies like Apple and Google. But most companies are not public, so what are they?

Youโ€™ve learned a lot about public companies, like Apple and Google, that you can invest in through Bloom ๐Ÿค”

But thereโ€™s another type of company that lurks in the shadows: private companies.

These are companies that donโ€™t sell their shares to the public through stock markets ๐Ÿ˜ˆ

Because they don't sell their shares to the public, private companies can keep more of their financial information and business decisions secret ๐Ÿคซ

Ownership and decision-making is typically in the hands of a limited number of individuals, with no need to cater to public shareholders ๐Ÿ‘€

But despite what it may seem, private companies can be REALLY big.

The biggest private company in the US is Cargill, and they do $165 BILLION in annual revenue.

Thatโ€™s even more than Meta! ๐Ÿ˜ฒ

You are probably familiar with many private companies such as SpaceX, IKEA, LEGO, Rolex, Panda Express and X (Twitter) ๐Ÿš€

But if you invest in public companies by buying their shares on the stock market, how do people invest in private companies?

In the next lesson, you'll learn about the $4.7 trillion industry that specializes in investing in private companies: private equity ๐ŸŽฉ

Test your knowledge

Which of the following is true of private companies?

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How do private companies typically handle their financial information?

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Who usually owns and makes decisions in private companies?

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Which is NOT a private company?

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What is the industry that invests in private companies?

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What's next?

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