NLX Platform

It is much easier to invest in a publicly–traded firm than a privately–held company. Public companies, especially larger ones, can easily be bought and sold on the stock market and, therefore, have superior liquidity and a quoted market value. Conversely, it can be years before a private firm can again be sold and prices must be negotiated between the seller and buyer.

Being the owner of a private firm means sharing more directly in the underlying firm’s profits. Earnings may grow at a public firm, but they are retained unless paid out as dividends or used to buy back stock. Private firm earnings can be paid directly to the owners. Private owners can also have a larger role in the decision-making process at the firm, especially investors with large ownership stakes.

The biggest challenge for Private Ltd. or LLP is how to raise funds to sell shares for a better acceptable offer.